We're a Baker Tilly network member
Learn more
Back to top
Our advocacy work: Division 7A

Our advocacy work: Division 7A

At the same time that the ATO released their public guidance on section 100A, the ATO updated its view regarding the treatment of unpaid present entitlements (“UPEs”) for Division 7A purposes.

In TD 2022/D1, the ATO states that distributions made to corporate beneficiaries would be treated as Division 7A loans if left unpaid.

However, in the draft determination the precise timing of the loan (and time necessary to put loan agreements in place and make the first loan repayment) was said to depend on the nature of the entitlement which would lead to needlessly complicated administration and compliance for taxpayers.

Following consultation with us, the ATO has simplified the proposed timing rules such that in almost all cases, a UPE will now be considered to give rise to the provision of financial accommodation in the income year following the conferral of the entitlement.

This final view and the ATO’s approach to public consultation is welcome and significantly simplifies compliance with Division 7A for the 2022-23 and later income years.

You can read our submission below.

You can find out more about our advocacy work on the website here

This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

Nigel Fischer

Nigel Fischer

Managing Partner Brisbane
Alexis Kokkinos

Alexis Kokkinos

Partner Melbourne
Michael Minter

Michael Minter

Managing Partner Newcastle and Hunter
Leon Mok

Leon Mok

Managing Director Perth
Chris Ardagna

Chris Ardagna

Partner Sydney
Pitcher Partners insights Get the latest Pitcher Partners updates direct to your inbox

Thank you for you interest

How can we help you?

Business or personal advice
General information
Career information
Media enquiries
Contact expert
Become a member
Specialist query
Please provide as much detail to ensure appropriate allocation of your query
Please highlight a realistic time frame that will enable us to provide advice within a suitable and timely manner. Please note given conflicting demands with our senior personnel, we will endeavour to respond to you within the nominated time frame. If you require an urgent response, please contact us on 03 8610 5477.
CPN Enquiry
Business Radar 2023
Tax facts 2023-24
Student careers 2023-24
Search by industry