Tag Archives: Div 7A ATO

Div 7A and financial accommodation

A new draft ruling has been released on when “financial accommodation” applies and thus a Div 7A loan occurs in private group arrangements involving unpaid present entitlements and use of sub-trusts. Importantly, the views contained in the draft ruling differ from the ATO’s previous substantive ruling on the issue. Once finalised, this new ATO view will apply from 1 July 2022. The previous ruling, along with an associated practice statement will be withdrawn but will still apply to trust entitlements arising before 1 July 2022.

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