UPEs – A Common Trap for Trustees of Trusts. How to avoid costly tax penalties & benefit from cash flow advantages
In my last article I highlighted the importance of companies correctly applying Division 7A and the significant tax penalties that can arise if you get it wrong. Here, in what is a companion article, I explore what you need to know about Unpaid Present Entitlements (UPE) between related private companies and trusts that arise where income of […]
Tax Time Count Down
With 30 June 2016 just a few weeks away there are 3 SUPER things you need to consider before then: 1. Make concessional contributions to receive a maximum tax deduction;2. Pay the minimum pension. This ensures your fund’s income is tax free;3. Check your NCC cap before making further non concessional contributions. Concessional ContributionsThe Concessional […]
5 Steps for mitigating tax penalties on private company borrowings
Introduced almost 19 years ago, Division 7A and its various exemptions apply to all private companies, their shareholders and shareholder associates across the country. While I consider this matter an Accounting & Tax 101 function, I regularly see it applied incorrectly which is concerning when you consider the significant tax penalties it can bring. Good […]