AAT

September 10, 2019

Beneficiary taxed on badly documented loan from trust

The Administrative Appeals Tribunal (AAT) in its recent decision (on 11 July 2019) Howard v Commissioner of Taxation held that a loan made by a company to a beneficiary of a trust through an interposed entity constituted a deemed dividend under Subdivision E of Division 7A of ITAA 1936. The Commissioner found a loan of…