Submissions to Treasury
Submissions have now closed to Treasury concerning their
Consultation Paper "Targeted Amendments to Div. 7A Integrity
Rules" (October 2018 – Consultation Paper).
Whilst it is hoped that the submissions to Treasury may finally
provide some worthwhile improvements to Div. 7A, the fact that this
whole process started in May 2012, and as of today, the limited
proposed amendments still lack the required detail, there is little
doubt that the monster Div. 7A has turned into, is not about to be
constrained.
Div 7A replacement to s108 in 1997
When Div. 7A was introduced in 1997 to replace section 108,
dealing with the release of private company profits to shareholders
(or associate of shareholders), they seemed to be largely sensible
measures that would allow a taxpayer to self-assess whether they
had a deemed dividend, rather than the Commissioner having to form
an opinion that there had been a release of profits before section
108 applied.
