ATO continues the distribution confusion

The ATO has released two draft fact sheets relating to the 2010 amendments to corporate law and the income tax in relation to dividends. Not only do the fact sheets create potential traps for taxpayers in relation to corporate distributions, they are also part of a wider trend under which the ATO increasingly interprets the tax legislation to produce distributions that are taxed in full without the benefit of franking. This Tax Brief relates the background to the amendments, provides an analysis of the fact sheets and the problems they will cause, and then sets them against a broader context of increasing taxpayer confusion in relation to corporate distributions.

For our full Tax Brief - click here