'Bloody mess' Tax Act could be worsened with changes
The government’s intentions to change and simplify Division 7A have been broadly welcomed, but certain tweaks slated to come into effect next year could catch out accountants on their historic practices with clients’ loans.
Following recommendations from the Board of Taxation, the government announced in the 2016/17 budget that it would be making targeted amendments to improve the operation of Division 7A of the Income Tax Assessment Act 1936 (Division 7A). While the exact details of the amendments have yet to be revealed by the government, Institute of Public Accountants senior tax adviser Tony Greco said moves to simplify Division 7A have been much anticipated.
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