Division 7A Compliance Kit

Contributor: ShineWing Australia
Publisher: Thomson Reuters


Division 7A Compliance Kit



Division 7A compliance Kit and Workflow



Div 7A Workflow Solution


Division 7A Compliance Kit & Workflow Solution

Division 7A is a complicated issue for practitioners and is a significant tax issue for shareholders of private companies, especially those operating through a trust structure.

The Division 7A suite consists of 2 products which complements each other; Division 7A Compliance Kit and Division 7A Workflow Solution.

Division 7A Compliance Kit Features

The Division 7A Compliance Kit is the comprehensive guide to understanding the Division 7A rules. Consisting of detailed commentary on the Division 7A legislation, policy and precedents, the service also includes calculators to help you to perform all necessary Division 7A calculations, including minimum yearly repayment, distributable surplus, corrective action, and unpaid trust distributions.

Most SMEs and high-wealth clients have private company entities as part of their structure. Over time, the "distributable surplus" amounts can become staggering and if it goes wrong clients will look to their accountants to pay the tax.

Division 7A Compliance Kit Content

  • What's New!
  • Recent Developments
  • Overview
  • How Division 7A Works
  • Risk Analysis
  • Possible Solutions to Known Risks
  • Commentary
  • Source material
  • Case studies

Included in this service, is a "Case studies" section which contains actual scenarios of Division 7A problems from practitioners and responded to by Thomson Reuters' team of expert writers. This is a very useful section for subscribers to understand and apply the Division 7A legislation.

Updated annually.

Division 7A Workflow Solution Features

The Division 7A Workflow Solution can mitigate if not remove this risk entirely through:

  • Providing an easy to follow nine-step process (flowcharts) identifying risks and solutions. The flowcharts are linked to the most current legislation
  • Covering the entire risk area including:
    • Unpaid Present Entitlements (UPEs)
    • Interposed Entities (both companies and trusts)
    • Corrective Action
  • Providing comprehensive electronic calculators for Excluded Loans and Sub Trusts which:
    • calculate annual interest and Minimum Yearly Repayments
    • provide corrective action calculators
  • Providing pro forma documentation in relation to:
    • Loan Agreements (secured and unsecured)
    • Sub Trust Agreements
    • letters to clients.


1. Div 7A Compliance Kit: commentary, legislation, tools (calculators, decision trees, client register, letter and minute templates).

2. Div 7A Workflow Solution: links to legislation, commentary, calculators, tools (calculators, decision trees, client register, letter and minute templates).



> Minimum yearly repayment calculator                                                                                                   

> Corrective action calculator

> Unpaid trust distribution calculator

> Distributable surplus calculator


> Client letters

> Minutes

> Loan agreements

Decision Tree

Client Register


  • Allows transfer of data from previous year.
  • User guide and help screens save time in using product.
  • Authored by well regarded accounting firm.
  • Saves research time by aiding understanding of the complexity of Division 7A and how it relates to other provisions and rules.
  • Reduces the risk of getting it wrong – our experts have thoroughly analysed and mapped Division 7A for the user.
  • Reduces risk by aiding assessment of transactions, both current and previous. Can reduce risk for clients by ensuring they are made compliant from now and provision made for latent tax liability if necessary.
  • Saves calculation time and frustration: easy to use, saveable and trackable.
  • Add value to clients by helping them to get “audit ready”.
  • Division 7A Workflow Solution presents a series of detailed flowcharts to assist users in areas including if a transaction results in the application of Division 7A.