UPEs, Unit Trusts and Liquidations: Unpicking the Nasty Tax Issues – Recorded Online Conference

Our annual 2-day business and property tax conferences are among the most highly regarded professional development events we run, but we realise that not everyone can spare two days out of the office. So we’re offering you a new way to access the experts online – a half-day online conference, focused on the tricky issues facing advisers in practice.

You can put your staff in the boardroom and watch it there. You can watch it on your computer or on your portable electronic device. All for the same low price.

The conference will be based on our highly successful video webinar technology: there’ll be a chairperson, a panel of experts, presentations and discussion.

Session 1: Unpaid Present Entitlements - The Division 7A Ticking Time Bomb

Many trustees placed funds representing UPEs on seven-year loans from the sub-trust to the main trust. While the ATO has extended the deadline, this has simply deferred the problem. This session covers how to clean up outstanding UPEs and other Division 7A problems:

• Practical Compliance Guideline PCG 2017/13
• Ensuring a loan is not deemed a dividend by the ATO
• Identifying the role that the distributable surplus has in determining deemed dividend
• Clarifying how UPEs may be classified in the context of Div. 7A
• Dealing with existing and inherited Div. 7A problems
• Working out ways existing Div. 7A loans can be eliminated tax effectively
• Sub trust arrangements – legal documentation and repayment
• Turning an existing UPE into new loan facility
• Case study – the Div. 7A reform agenda: future developments

Session 2: Tax Problems Using Trusts to Own Investment Property

The use of trusts to hold property can be a good asset protection measure, provided they’re set up properly. However, the complexities of trust taxation continue to increase. This session looks at:

• Property investment and the use of unit trust v discretionary trust – the tax position compared
• Using a trust to pass on net cash profit – are there any tax risks?
• Trust eligibility for CGT discount and the tax position when distributed to beneficiaries
• Trustee resolutions – TD 2012/22: examples of effective resolutions for trust distributions in trusts holding property
• Streaming of capital gains and franked distributions TR 2012/D1 in trusts holding property
• Property development trusts claiming CGT discount – ATO crackdown
• Avoiding a reimbursement agreement under s 100A

Session 3: The End is Nigh – Tax Issues on Liquidation of Companies

A company may be placed into voluntary liquidation for a variety of reasons. When the directors of a solvent company decide to wrap up their company, careful planning is required to maximise the tax advantages. This session shows you how to get the assets out of companies in a tax-effective manner. It covers:

• Members’ voluntary liquidation versus deregistration
• Identifying pre CGT gains – how to get them out tax free
• Cleaning up franking accounts and maximizing tax benefits
• Dealing with loans – forgiveness, debt and Div. 7A implications
• MVPs:
  • which parts of the liquidator’s distribution is taxable to the shareholder?
  • the interaction with the CGT discount and the small business CGT concessions
  • CGT traps to watch
  • stamp duty and GST issues.
  • liquidator’s potential liability and how to manage it