WHAT'S NEW?

Tax Issues on Release of a Company's Unpaid Present Entitlement

The ATO has issued a taxation determination to explain whether a private company's release of its unpaid present entitlement (UPE) constitutes a "payment" within the shareholder loan rules, resulting in a "deemed dividend". The determination applies both before and after its date of issue, 25 November 2015, so taxpayers should review it carefully to manage any possible Div 7A risk.