Division 7A
Interposed Entity Provisions [4]
8 May 2025
This video presents seven detailed examples illustrating how Subdivision E of Division 7A operates to trace the ultimate economic benefit of private company payments or loans, often resulting in notional loans and deemed unfranked dividends. It highlights common but risky structures such as trust distributions, inter-company loans, bank guarantees, and unit trust subscriptions, showing how the Commissioner may disregard interposed entities if a shareholder or associate benefits. The session draws on TD 2011/16 and TD 2018/13 to emphasise the ATO’s broad interpretive approach and the importance of tracing and documentation.
18 minutes.
Interposed Entity Provisions [3]
30 April 2025
This third video in the Division 7A interposed entity series examines how section 109R can apply when repayments of private company loans are made through interposed entities under Subdivision E. The ATO’s draft TD 2025/D2 makes clear that even notional repayments can be disregarded under 109R if they are effectively circular, potentially triggering unexpected deemed dividends. Accountants must carefully assess the source of repayments and the sequence of transactions to avoid pitfalls, especially around year-end or lodgement dates.
27 minutes.
Interposed Entity Provisions [2]
27 April 2025
This video is the second in a series exploring the interposed entity provisions of Division 7A. John Jeffreys explains the operation of sections 109U and 109UA, focusing on how private company guarantees for loans through interposed entities can trigger deemed dividends under Division 7A, even when banks or unrelated parties are involved. The video also covers the ATO’s compliance approach, key exceptions, and highlights the importance of assessing distributable surplus within family group structures.
22 minutes.
Interposed Entity Provisions [1]
26 April 2025
This video explains how Subdivision E of Division 7A operates when private company funds flow through trusts or other companies to shareholders or their associates. It highlights that even ordinary commercial transactions can trigger deemed dividends under Division 7A, warns that exemptions under other parts of Division 7A often don’t protect against Subdivision E, and stresses the importance of tracing funds through all interposed entities to properly assess Division 7A risks.
24 minutes.
Subdivisions EA and EB
11 March 2025
This webinar covers the operation of subdivisions EA and EB of Division 7A Part III ITAA 1936. These subdivisions are likely to take on much more significance following the Full Federal Court decision in the Bendel case which found that unpaid present entitlements were not loans for Division 7A purposes. 91 minutes.
Commissioner of Taxation v Bendel
Full Federal Court Decision
25 February 2025
This webinar discusses the most anticipated tax decision this century – the Bendel decision of the Full Federal Court. The court held that an unpaid present entitlement owed to a corporate beneficiary (bucket company) was not a loan for Division 7A purposes. 100 minutes.
Division 7A [Part 2]
12 March 2024
This webinar discusses aspects of Division 7A that are less well known. Topics are: Deemed dividends from forgiven debts ~ section 109R where certain payments are disregarded for Division 7A purposes ~ section 109RC dealing with a concession in relation to family law obligations and section 109RB where the ATO is given the discretion to permit Division 7A not to have application. 72 minutes.
Division 7A [Part 1]
The Distributable Surplus
5 March 2024
This webinar discusses the decision of the AAT that held in favour of the taxpayer in the Bendel case concerning whether UPEs were loans for the purposes of Division 7A. This decision was appealed directly to the Full Federal Court (see above). 78 minutes.
Bendel v Commissioner of Taxation
Administrative Appeals Tribunal Decision
24 October 2023
This webinar discusses the decision of the AAT that held in favour of the taxpayer in the Bendel case concerning whether UPEs were loans for the purposes of Division 7A. This decision was appealed directly to the Full Federal Court (see above). 63 minutes.