No 4: ATO final ruling/practice statement on UPEs owing to companies

Further to Client Alert No 2, the Australian Taxation Office (ATO) has finalised Draft Taxation Ruling TR 2009/D8 and released it in final form as Taxation Ruling TR 2010/3. In addition, the ATO has released Practice Statement PS LA 2010/4 which gives ATO employees guidance as to how TR 2010/3 should be interpreted (but also
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No 3: Excess contributions tax

In the 2009 Federal Budget, it was announced that the maximum concessional contribution able to be made to a complying superannuation fund for the 2009/10 financial year would be halved to $25,000 (and a transitional amount of $50,000 for those taxpayers over the age of 50). This has focused attention on contributions which may inadvertently
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No 1: ATO looking to attack trust distributions to companies

Distributing income from trusts to companies has been a longstanding practice by taxpayers and practitioners to limit the tax on earnings initially to the corporate rate of 30%. Any “top up” tax is usually paid by the shareholder when the company declares dividends as a result of their marginal rate often being higher than the
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