Why was section 109UB repealed and replaced by subdivision EA?
On 12 December 2002, the Treasurer announced that the Government would amend section 109UB and that the amendments would address problems identified by the Board of Taxation in its report on the Taxation of Discretionary Trusts concerning the effectiveness and fairness of the deemed dividend rules contained in Division 7A. Loans that attracted the operation of section 109UB were not capable of being fully repaid or put on a commercial footing and therefore automatically attracted the operation of the deemed dividend rules.
Related Questions
- If section 109UB or subdivision EA applies, will a dividend be taken to arise if the trustee pays over the present entitlement to the private company and it is then loaned back to the trust?
- What can people do to protect themselves until DOMA Section 3 is conclusively repealed or overturned?
- Why was section 109UB repealed and replaced by subdivision EA?
