Change to Shareholder Payments Law
Division 7A of the Australian tax law deals with payments and loans to shareholders in private companies and their associates. Broadly, the purpose of the law is to stop shareholders and their associates from accessing the profits of a private company on a tax-free or non-arm's length basis.
In the May 2009 Australian Federal Budget it was announced that changes were to be made to Division 7A relating to the use of company assets, under a lease, licence or other right to use, for less than their market value.
An exposure draft of the proposed legislation was released on 4 January 2010 by the Australian Treasury.
This movie explains what the new law is about and the exceptions to its operation and includes four case studies of how the proposed law will operate.
[89.3 MB] [8 minutes 4 seconds] [animated]
Download now or have it delivered to you on DVD.
|