Media Release [HTML]
Submissions - Second Discussion Paper [HTML]
On 18 May 2012, the then Assistant Treasurer announced that the Board would undertake a post-implementation review of Division 7A of Part III of the Income Tax Assessment Act 1936, which was to be completed by 30 June 2013. On 8 November 2013 the Assistant Treasurer announced an extension to these terms of reference and extended its reporting date to 31 October 2014.
The Board of Taxation is currently undertaking a post-implementation review of Division 7A of Part III of the Income Tax Assessment Act 1936 (Division 7A).
Division 7A contains integrity provisions designed to prevent shareholders (or their associates) of private companies from inappropriately accessing the profits of those companies in the form of payments, loans or debt forgiveness transactions.
Division 7A is part of a broader tax framework in which private business structures operate. Within this context the Board should:
The Board’s report should take account of the revenue implications of various options and, where appropriate, suggest approaches that minimise any revenue cost.
In undertaking this review the Board should seek public submissions and consult widely.
The Board should report to the Government by 31 October 2014.
On 20 December 2012 the Board of Taxation released its first discussion paper on the post-implementation review of Division 7A of Part III of the Income Tax Assessment Act 1936.
On 25 March 2014 the Board of Taxation released its second discussion paper on the post-implementation review of Division 7A of Part III of the Income Tax Assessment Act 1936.
The Chair of the Board of Taxation, Mrs Teresa Dyson, announced the release of the second discussion paper [PDF 1.19MB | DOC 723 KB] via a press release. The Board developed this second discussion paper to invite submissions and facilitate stakeholder consultation on the issues raised in accordance with the extended terms of reference given for the review. The Board requested that submissions be made by 9 May 2014.
In undertaking this review, the Board consulted widely to provide all stakeholders with the opportunity to participate in the review. The Board received 19 submissions on the first discussion paper, including three confidential submissions and 18 submissions on the second discussion paper, including three confidential submissions.
The Board appointed a working group of its members comprising Mr Curt Rendall (Chair of the working group), Mr Keith James and Ms Elizabeth Jameson to oversee this review.
The Board has completed its post-implementation review of Division 7A and provided its report to government on 12 November 2014.
Further information on this review can be obtained from Nick Seal (02 6263 4369) at the Board of Taxation Secretariat.