The Australian Taxation Office hasreleased a final publication of its guidelines on how distributions by trusts of unpaid entitlements to companies will now be treated. Michael Jones, of Cummings Flavel McCormack, says there are some changes to the earlier draft, following representations from accountants and their clients. First, there will be opportunities to make corrections, until December 31, 2011, where distributions have been incorrectly described as loans or as Division 7A arrangements. From now on though, unpaid entitlements will be treated as loans, and the Tax Office has set out a number of ways of handling them which will meet their guidelines.Michael Jones says it's time to see your accountant to discuss how the changes affect you.
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