Contracts matter in related Party Dealings
It can be a rare thing to have all the assets of a business held by one entity. Often the business structure contains various entities that own different elements of the business such as the intellectual property or the business premises. The use of service entities has waned in recent years however many still exist. […]
FBT or Division 7A: When a Company Pays a Director’s Personal Expenses
Private groups frequently encounter situations where company payments, loans or benefits are provided to shareholders, directors, or their associates. In such cases, both the Fringe Benefits Tax (FBT) regime and Division 7A of the Income Tax Assessment Act 1936 (ITAA 1936) may potentially apply. To prevent overlap and double taxation, the legislation includes a tie-breaker […]