Division 7A newsflash: call for further ATO cash flow assistance
As we have previously noted, cash is king in these uncertain times.
To date, the Australian Taxation Office has provided businesses with cash flow assistance through a range of measures designed to defer tax payments.
We have made submissions through the professional bodies that further assistance would be welcome – in the form of a deferral of the requirement to make the minimum yearly repayment (MYR) on complying Division 7A loans. The ATO appears to be listening.
In a fact sheet issued on 13 May 2020, the ATO says ‘The Commissioner will soon be issuing further guidance for those affected by COVID-19 with MYRs due for the year ended 30 June 2020.’
We will be keeping a close watch on what that guidance will be.
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