This presentation seeks to:
- provide a brief history of s 108 and Division 7A
- draw upon history to help us understand the current application of both s 108 and Division 7A
- consider what ‘loans’ are subject to Division 7A and the characteristics of such loans with special reference to the role of trusts and the concept of present entitlement in Division 7A
- consider what is meant by distributable surplus as defined in s 109Y(2) of the Act and what help we may find in consideration of the term profit in the history of s 108 of the Act
- consider the Commissioners Practice Statement PS LA 2006/2 and the treatment of statute barred loans
- examine some common mistakes in the interpretation and application of Division 7A and some unanswered issues or maybe opportunities.