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: Australian Regulatory Compliance ReviewExposure draft changes to Division 7A non-commercial loan rules
By admin
The Assistant Treasurer, Senator the Hon Nick Sherry, has released for public consultation the Government’s exposure draft legislation and explanatory material, on changes to tighten the non-commercial loan rules in Division 7A of the Income Tax Assessment Act 1936, as announced in the 2009-10 Budget.
The exposure draft legislation proposes changes that will prevent shareholders and their associates from avoiding tax on distributions and benefits they receive from private companies such as holiday houses, cars and other luxury items, at prices that are less than market value.
The changes will not apply to genuine farming businesses and small businesses that include a residence located at the business.
Submissions close on 1 February 2010.
Full post as published by Australian Regulatory Compliance Review on January 03, 2010 (boomark / email).
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