Be Informed is William Buck's regular newsletter, filled with up to date news and relevant advice for individuals and businesses.
This month we have prepared two articles that cover current issues we believe are relevant to SME advisors.
The first article looks at Division 7A and four of the common errors that are made when applying these provisions.
The second article considers family trust elections and the reasons why a trustee should (or shouldn’t) make one.
We also take this opportunity to wish you a Merry Christmas and a Happy New Year.
The Division 7A laws have been in place for more than 15 years now and are encountered on a regular basis by many practitioners. Despite this implied familiarity, ATO audits often result in significant adjustments being made on the basis that Division 7A has been incorrectly applied. This article highlights four areas where practitioners commonly make mistakes when applying Division 7A to their clients’ circumstances.
Most practitioners have heard of family trust elections, and some may have made family trust elections to err on the side of caution. However, in many cases, a clear explanation of the reasons for making a family trust election is not readily available. This article aims to provide a practical explanation of the main situations in which a family trust election may be required, and sets out some of the pitfalls associated with making a family trust election.