Submission:

Section 100A: Reimbursement agreements and Division 7A: Unpaid present entitlements and sub-trusts.

04 May 2022

On 23 February, 2022, the ATO issued Draft TR 2022/D1 and Draft PCG 2022/D1 which sets out the Commissioner’s view on trust reimbursement agreements under s100A in Division 6 of the Income Tax Assessment Act 1936 including the ATO’s interpretation of the exclusion for ‘ordinary family or commercial dealing’ and the ATO’s proposed approach to compliance activity regarding reimbursement agreements.

On 23 February, 2022, the ATO also issued Draft TD 2022/D1 which sets out the Commissioner’s revised extended view on the application of Division 7A (i.e. loans to shareholders) in relation to unpaid present entitlements (UPE’s) and sub-trust arrangements.

In response to the ATO’s request for comments on these draft guidelines, BDO National Tax has prepared two BDO submissions: