A closer look at the *TR 2022/D1 - Income Tax: s100A reimbursement schemes* released today by the ATO which provides the Commissioner's view about these arrangements and the four basic requirements for section 100A to apply, namely the:
🔹 'Connection requirement'
🔹 'Benefit to another requirement'
🔹 'Tax reduction purpose requirement'
🔹 'Ordinary dealing exception'
For example, scenarios that illustrate the principles in the Ruling, refer to:
1 - trust established under a will - Pg.107
2 - distribution to spouses with mixed finances - Pg.110
3 - gift from parents to a child - Pg.114
4 - trust entitlement gifted to trustee - Pg.116
5 - unpaid entitlements held on separate trusts - Pg.121
6 - non-commercial loan between family members - Pg.124
7 - dealing at arm's length and loan on commercial terms - P.128
8 - share buy-back arrangement - P.133
9 - circular flow of funds - P.148
NOTE:
- The compliance approach is set out in PCG 2022/D1.
- Information current as at 23 Feb 2022.
- The decision of the Federal Court in Guardian AIT Pty Ltd ATF Australian Investment Trust v Commissioner of Taxation [2021] FCA 1619 (Guardian), referred to in this Ruling, is presently the subject of an appeal.
- Examples contained in TR 2022/D1 are not binding on the Commissioner.
See PDF for more details.