by Ariful | Sep 21, 2026 | Banking
American Express builds a wider SME financial platform
American Express launched its Business Savings account on 15 September 2026 through American Express National Bank, Member FDIC.
The account offers:
- 2.95% APY on all balances
- No minimum balance
- No monthly fees
- Free ACH, wire and check deposits
- Same Day ACH for a $10 fee
- FDIC insurance up to $250,000
The product targets a familiar SME problem: excess operating cash sitting in a low-interest current account. An American Express survey of 1,165 small-business owners, conducted from 30 July to 4 August 2026, found that 82% believed excess cash could be used more effectively in a savings account.
Amex is also extending its platform beyond banking. It announced a payroll solution with Gusto for early 2027. The service will embed Gusto payroll directly into the Amex Business Checking dashboard using the Gusto Embedded API and Symmetry payroll tax infrastructure.
Planned functionality includes:
- Federal, state and local payroll tax filings
- Employee benefits
- 401(k) administration
- Time tracking
- Payroll compliance
- A monthly subscription model
By the end of 2026, Graphite Business Cash Unlimited Card holders will also be able to deposit Reward Dollars directly into Business Checking at a 1:1 value.
This is a full-stack push. Amex already operates its own payment network, accepts transactions at 170 million merchant locations and serves 4.3 million US small-business customers. The wider competitive landscape is also changing, with Brex acquired by Capital One in April 2026 for approximately $5.15 billion and Mercury receiving conditional approval for an OCC national bank charter in April.
Read the coverage from Tech Times and American Banker.
What this means for your business
Do not choose a banking product based only on the headline interest rate. Check:
- Whether the account is suitable for your legal entity and location
- Deposit protection limits
- Transfer fees and processing times
- How easily transactions export into your bookkeeping system
- Whether payroll data can be reconciled accurately
- Whether rewards and savings balances are recorded correctly in the accounts
A higher-yield account can improve cash management. Poor transaction categorisation can create additional bookkeeping work and inaccurate management reports.
Neema separates FX conversion from international payouts
Neema launched its FX Trading Room on 16 September 2026 for financial institutions and business clients.
The service allows users to:
- Request FX quotes.
- Execute currency exchanges.
- Hold converted balances on account.
- Transfer funds later, when required.
This decouples currency conversion from payout execution. Businesses do not have to convert money at the exact moment they make a supplier payment.
The service launched with seven currencies:
- USD
- EUR
- GBP
- LKR
- THB
- CNY
- ILS
Neema’s payments network reaches more than 120 countries. CEO Moshe Kimhi said: “With fluctuating exchange rates, this capability allows clients to have more control over when and how they transfer money around the world, with the potential to save significant costs.”
For an ecommerce business, this could help separate three different decisions:
- When to receive customer revenue
- When to convert currency
- When to pay a supplier or logistics provider
That separation may be useful for Amazon sellers, Shopify brands and digital businesses with recurring international receipts.
However, you still need reliable records for the exchange rate used, the transaction date, the converted balance and any realised foreign exchange gain or loss.
Read the Neema FX Trading Room report.
Verto expands multi-currency card access for African businesses
Verto partnered with Visa to launch a global multi-currency card for African businesses, according to reports published on 20–21 September 2026.
The development reflects a wider trend: international businesses increasingly want payment cards that connect to multi-currency balances rather than forcing every transaction through one domestic account.
For businesses buying software, advertising, stock or services internationally, review:
- Which currencies can be held
- Which currencies can be spent
- Card acceptance by country
- Settlement timing
- FX markups
- Refund and chargeback procedures
- How card transactions enter your accounting records
Read the Verto and Visa report.
GXBank uses risk-sharing to expand SME lending
Malaysia’s GXBank secured backing from the International Finance Corporation, part of the World Bank Group, for a loan portfolio of up to US$110 million aimed at micro, small and medium-sized enterprises.
The IFC will provide up to US$4.95 million in unfunded first-loss coverage. This risk-sharing structure reduces the bank’s exposure and may expand lending to businesses with limited collateral or short credit histories.
The model uses transaction data instead of relying only on traditional branch-based assessment. The IFC also announced a separate initiative involving up to US$700 million in guarantees for digital payments in emerging markets.
For growing businesses, transaction data is becoming increasingly important. Clean sales records, consistent bank reconciliations and complete payment histories can support both compliance and funding applications.
That makes accurate bookkeeping operationally valuable. Your records should show:
- Revenue by sales channel
- Gross and net payment receipts
- Refunds and chargebacks
- Inventory and supplier payments
- Tax liabilities
- Cash held in each currency
Read the GXBank and IFC report.
FCA says regulation is not the main barrier to SME finance
The FCA published FS26/2, “Supporting SME access to finance”, on 17 September 2026.
Its review found no evidence that FCA regulation is a major barrier to SME access to finance. Instead, it identified practical obstacles including:
- Low awareness of available finance options
- Complex application processes
by Ariful | Sep 21, 2026 | E-Commerce
For the week commencing 21 September 2026, UK Amazon and Shopify sellers face several important VAT, fulfilment and cross-border compliance deadlines. Use this roundup to reconcile your records, protect your margins and prepare for Q4 trading.
1. Prepare for the 7 October VAT return deadline
If your VAT quarter ended on 31 August 2026, you must submit your VAT return and ensure cleared payment reaches HMRC by 7 October 2026.
The standard rule is one calendar month and seven days after the accounting period ends. This deadline applies even when you submit through Making Tax Digital-compatible software. HMRC’s guidance confirms that you must file and pay by the same date.
Before submitting, complete this reconciliation checklist:
- Match Amazon settlement reports to your bookkeeping records.
- Reconcile Shopify payouts against individual orders.
- Separate sales, refunds, chargebacks and payment fees.
- Check VAT treatment for UK sales and EU sales.
- Review stock location and fulfilment country for cross-border orders.
- Confirm whether marketplace-collected VAT has been recorded correctly.
- Investigate timing differences between order date, dispatch date and payout date.
- Make sure your payment will reach HMRC’s account by the deadline.
Accurate ecommerce bookkeeping in the UK depends on reconciling platform reports, not simply importing bank transactions. This is why a structured monthly or daily process helps prevent underpayments, duplicated income and incorrect VAT claims.
The UK VAT registration threshold remains £90,000 of taxable turnover on a rolling 12-month basis. You must also monitor the 30-day forward look. The deregistration threshold remains £88,000.
2. Control Amazon Q4 deadlines and rising fulfilment costs
Q4 preparation is now urgent for Amazon sellers.
Key Amazon UK dates
- 16 September 2026: recommended UK inventory arrival date for Prime Big Deal Days has passed.
- 23 September 2026: deal submissions close for Prime Big Deal Days.
- 15 October 2026: festive peak fulfilment fee begins.
- 28 October 2026: recommended UK inventory arrival date for Black Friday Week.
- 18 November 2026: Black Friday Week deal submissions close.
- 14 January 2027: festive peak fulfilment fee ends.
For selected UK FBA orders from 15 October 2026 to 14 January 2027, Amazon’s average additional festive peak charge is:
- £0.12 per parcel item for small and standard parcels.
- £0.07 per large or extra-large envelope item.
The fee can apply to local FBA and Remote Fulfilment EU-to-UK orders. Oversize and Low-Price FBA items are exempt. Amazon determines the applicable fee by the ship date, so late dispatches can change the charge applied to an order.
The separate 1.5% fuel and logistics surcharge has applied year-round since 17 April 2026. It should be included in your Q4 margin calculations.
Promotion costs also matter. Amazon promotion fees are £12 upfront per promotion, plus 0.75% of promotional sales, capped at £600 for the variable element. Update your contribution margin before accepting deals.
Use Amazon’s Revenue Calculator and FBA Fee Preview report to model:
- Referral fees.
- FBA fulfilment fees.
- Peak charges.
- Fuel and logistics surcharges.
- Storage and removal costs.
- Promotional fees.
- VAT and marketplace settlement timing.
This is a key task for any Amazon FBA accounting UK process. A promotion can increase revenue while reducing cash contribution if fees and fulfilment costs are not included.
3. Check Amazon FBM delivery performance
From 30 September 2026, Amazon.co.uk Fulfilment by Merchant sellers must maintain a 90% business-hour delivery rate for Amazon Business customers.
From 30 October 2026, Amazon may deactivate listings for business customers if the required rate is not achieved.
Review your FBM controls now:
- Compare promised handling time with actual dispatch time.
- Review carrier delivery performance by SKU.
- Correct inaccurate inventory quantities.
- Check business-hour delivery data in Seller Central.
- Identify SKUs at risk of deactivation.
Amazon is also activating Automated Handling Time for SKUs where the configured handling time has been exceeded by actual performance for more than 30 days. Following the 15 July 2026 change, account-level default handling time displays only zero-day and one-day options.
Document your fulfilment data. It supports both operational decisions and accurate ecommerce accounting.
4. Separate company obligations from MTD for Income Tax
HMRC began auto-enrolling eligible sole traders from September 2026 for the 2026/27 phase of Making Tax Digital for Income Tax. The relevant qualifying income threshold is above £50,000.
The second quarterly update for 2026/27 is due on 7 November 2026. Affected individuals must keep digital records and use compatible software.
This regime applies to eligible individuals with self-employment and/or property income. Limited companies are not in scope in the same way. A UK Limited Company remains subject to its corporation tax, payroll, VAT and Companies House obligations rather than being treated as a sole trader under this MTD phase.
If you operate through both a company and personal sole-trader activity, keep the records separate. Mixing company sales, personal income and platform payouts creates avoidable filing errors.
5. Review VAT refunds for non-UK VAT group members
HMRC’s Revenue and Customs Brief 8 (2026), published on 8 September 2026, changes how eligible non-UK businesses in a UK VAT group claim UK VAT refunds.
The general rule is that the non-UK business that incurred the VAT must submit its own claim. The representative member cannot claim unless it incurred the cost itself.
For the transitional prescribed year from 1 July 2025 to 30 June 2026, HMRC will accept claims from either:
- The non-UK VAT group member that incurred the VAT.
- The VAT group’s representative member.
The deadline is 31 December 2026. HMRC may also reconsider certain claims rejected since 1 January 2021, subject to the conditions in the Brief. Review historic claims now so you do not lose recoverable VAT.
6. Correct the UK VAT rate after the temporary reduction
HMRC Agent Update issue 147, published 17 September 2026, confirms that the temporary 5% VAT rate for qualifying children’s meals, tickets and family attractions ended on 1 September 2026.
Relevant sales from 2 September 2026 should generally use the standard 20% VAT rate.
Affected businesses should check:
- Tills and point-of-sale systems.
- Booking platforms.
- Menus and price lists.
- Ecommerce product settings.
- Accounting software.
- VAT reports and credit notes.
by Ariful | Sep 21, 2026 | Business
TITLE: Australian Business Compliance: BAS, GST Controls, Card Surcharge Ban and ATO Enforcement
Lodge and pay your August BAS today
If your Australian business lodges monthly activity statements, your August 2026 BAS is due today, 21 September 2026.
You must lodge the activity statement and pay any amount owing by the applicable due date. The ATO’s September 2026 registered agent lodgment calendar confirms the 21 September deadline.
Before submitting, check:
- GST on sales and purchases.
- PAYG withholding.
- PAYG instalments, if applicable.
- Fuel tax credits, if claimed.
- Bank, payment gateway and marketplace reconciliations.
- Refunds, chargebacks and returned goods.
- Any adjustments from earlier BAS periods.
If you use a registered BAS agent, check the client’s activity statement in Online services for business. An agent-specific lodgment date may appear under the BAS agent lodgment program. Do not assume an extension applies. Confirm the due date shown for your business and ensure payment is made on time.
A complete reconciliation is essential. It helps you avoid incorrect GST reporting, unnecessary ATO follow-up and late payment costs.
Strengthen your GST classification controls before the next BAS
On 20 September, the ATO released findings from its GST assurance reviews of Top 1,000 public and multinational businesses for 2025–26.
The findings should interest every Australian ecommerce seller, digital business and growing SME. The ATO identified recurring classification weaknesses, particularly involving food and health products.
Around one third of food and health product issues received a low or red-flag assurance rating. The primary problem was treating taxable supplies as GST-free. The review also identified concerns involving approximately:
- 10% of financial supplies issues.
- 15% of real property issues.
The ATO’s findings were reported by Accounting Times and align with the ATO’s Top 1,000 GST assurance findings.
The root causes included:
- Weak governance when onboarding new products.
- Infrequent reviews of product master data.
- Misinterpretation of GST rules.
- Reliance on a supplier’s tax treatment without independent checks.
These weaknesses are not limited to large corporations. They can also affect an Amazon, Shopify, eBay or WooCommerce seller with hundreds of SKUs. They can affect a SaaS business with multiple billing plans. They can affect an agency selling taxable and GST-free services across different markets.
Review your product and service master data
Complete this checklist before your next BAS:
- List every product, service and SKU. Include bundles, subscriptions, gift cards, shipping charges and marketplace fees.
- Confirm the GST code for each item. Do not copy the code from a supplier invoice without checking the underlying transaction.
- Review food, supplements and health products carefully. A product that appears to be a basic food item may not qualify as GST-free.
- Check product changes. New packaging, ingredients, features or bundled components can change the correct GST treatment.
- Document your decisions. Keep the reasoning, source material and approval record for future reviews.
- Schedule periodic checks. Product tax codes should not remain unchanged for years without review.
Better master data reduces BAS corrections and gives you a stronger audit trail if the ATO asks how your GST outcomes were produced.
Keep every return and activity statement on schedule
The ATO is also increasing enforcement against businesses and individuals operating in the shadow economy.
According to the ATO’s September media release, “Out of the shadows: shadow economy prosecutions jump eighty per cent”, non-lodgement prosecutions increased by about 80% over two years. Around $2.7 million in fines were issued through court action.
The message is straightforward: failing to lodge is not a low-risk administrative issue. Businesses can face penalties, interest, debt recovery action and prosecution.
Keep a compliance calendar covering:
- Monthly BAS deadlines.
- Quarterly BAS deadlines.
- PAYG withholding reporting and payment.
- Superannuation obligations.
- Annual income tax returns.
- Payroll and employee records.
- Foreign transaction and marketplace records.
If you have overdue returns, identify them now. Bringing your records up to date is easier before the ATO issues further notices.
Prepare for the card surcharge ban from 1 October
From 1 October 2026, Australian businesses will generally need to stop charging customers separate surcharges for debit, credit and prepaid card payments on affected networks, including eftpos, Visa, Mastercard and American Express.
The change applies to in-store and online transactions. That means ecommerce businesses should review checkout settings as carefully as physical retailers review their EFTPOS terminals.
Read the official business.gov.au guidance on card payment surcharge changes, together with the RBA’s frequently asked questions and ACCC card surcharge guidance.
Before 1 October, you should:
- Disable surcharge settings in payment gateways and terminals.
- Remove card surcharge line items from invoices and checkout pages.
- Review payment provider contracts and merchant statements.
- Update pricing, terms and customer communications.
- Test Apple Pay, Google Pay and other digital wallet transactions.
- Confirm how payment fees and GST are recorded in your accounting system.
- Check whether non-card fees, booking fees or service charges are genuinely separate from card use.
A price change may affect your GST calculations. Review whether your displayed prices, transaction values and accounting codes still produce the correct BAS figures after surcharges are removed.
Note the 2026–27 loss
by Ariful | Sep 21, 2026 | US Updates
US Sales Tax Deadline: 21 September 2026
If you collect US sales tax, Monday 21 September 2026 is a critical filing and payment deadline in many jurisdictions. The usual 20th-of-the-month deadline fell on Sunday, so a large group of states moved the deadline to the next business day.
This applies to international ecommerce sellers, Amazon FBA operators, Shopify merchants, digital businesses, and US importers of record. It may cover monthly returns, prepayments, quarterly returns, or related payments depending on your filing frequency.
Do not assume every state uses 21 September. Several states have different dates.
File today if your state uses the 20th-of-the-month deadline
The following states and jurisdictions generally move their standard 20th-of-the-month sales tax deadline to Monday 21 September 2026 because 20 September fell on a Sunday:
- Alabama
- Arizona
- Arkansas
- Colorado, including most home-rule city returns
- District of Columbia
- Georgia
- Hawaii General Excise Tax
- Idaho
- Illinois
- Indiana, for early monthly filers
- Kentucky
- Louisiana, where parish deadlines generally align
- Maryland
- Michigan
- Minnesota
- Mississippi
- Nebraska
- Nevada
- New Jersey, for monthly prepayments; returns are generally filed quarterly
- New York, for monthly and quarterly returns
- North Carolina, where monthly prepayment filers must also remit a prepayment towards the next month’s liability
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Virginia
- West Virginia
- Wisconsin, for early monthly filers
Your filing obligation depends on the frequency assigned to your account. A monthly seller may be filing an August return. A quarterly seller may be filing a return covering the previous quarter. Some states may require a prepayment rather than the full return.
Check the relevant state revenue department before submitting. For example, New York’s 2026 filing calendar explains the state’s monthly and quarterly sales tax filing dates, while Colorado’s sales tax guidance sets out its filing rules and weekend adjustments.
Do not treat 21 September as a nationwide deadline
Several states follow different dates in September. Your compliance calendar should include the following deadlines:
- Maine: 15 September
- Florida: 18 September
- Ohio: 23 September
- Kansas, New Mexico, Vermont and Washington: 25 September
- California, Connecticut, Iowa, Massachusetts, Missouri, North Dakota, Utah and Wyoming: 30 September
- Wisconsin: 30 September for standard monthly filers
- Alaska: generally 30 September for remote seller returns in participating local jurisdictions
California also has a separate 24 September prepayment deadline for certain accounts. Its monthly August sales and use tax return is generally due on 30 September. The California Tax and Fee Filing Due Dates page confirms these dates.
North Dakota’s monthly August sales, use and gross receipts tax return and payment are due on 30 September, according to the state’s official 2026 deadline schedule.
If you missed a deadline earlier this month, submit the return and payment as soon as possible. Late filing can lead to penalties, interest, or compliance notices.
Marketplace collection does not remove your filing obligation
All 45 states with a statewide general sales tax plus the District of Columbia have marketplace facilitator laws. Amazon, Etsy and similar platforms may collect and remit sales tax on transactions processed through their marketplaces.
However, marketplace collection does not automatically eliminate your own filing obligations.
You may still need to:
- Maintain an active sales tax registration.
- File a zero return where no tax is payable.
- Report marketplace sales separately from direct sales.
- Make required prepayments.
- File quarterly or annual returns.
- Report sales made through your own website.
- Account for wholesale, B2B and other non-facilitated transactions.
Your Shopify store is not automatically covered simply because Amazon collects tax on your Amazon orders. Direct-to-consumer sales may create separate collection and reporting obligations.
Alaska, Delaware, Montana, New Hampshire and Oregon do not have a statewide sales tax. Alaska is different because local jurisdictions may impose their own remote seller and marketplace collection requirements.
Complete this checklist before the end of today
Use the following process to reduce the risk of a missed return.
-
List every state and local jurisdiction where you are registered.
This prevents you from relying on a general national calendar.
-
Confirm your filing frequency.
Check whether the account is monthly, quarterly, annual, or subject to prepayments.
-
Separate marketplace and direct-channel sales.
Reconcile Amazon, Etsy and other platform reports with Shopify, WooCommerce, wholesale and B2B invoices.
-
Review exempt and resale transactions.
Keep valid exemption certificates and resale documentation. This supports the figures on your return.
-
Check import and fulfilment records.
If you are the importer of record, review customs entries, warehouse movements, use tax exposure and inventory destinations.
-
Submit the return, even if the liability is zero.
A zero return may still be required. Filing it protects your account from an apparent non-filing notice.
-
Schedule or make the payment.
Filing without paying the balance can still result in interest and collection action.
-
Save evidence of submission.
Keep confirmation numbers, payment references, filed returns and reconciliation workpapers.
We can support this process through ongoing bookkeeping, sales tax calculations, filing preparation and compliance delivery. You provide the business data. We keep the compliance work moving throughout the year.
Worked example: a UK-owned Amazon FBA seller with a US LLC
Imagine a UK company owner operates a US single-member LLC. The LLC sells household products through Amazon FBA and Shopify.
Amazon collected and remitted sales tax on many marketplace transactions. The seller therefore assumes there is nothing to file.
That assumption may be incorrect.
The seller should first review the states where the LLC is registered or has a filing account. Suppose the business has filing obligations in Texas, Illinois, New York and California.
The September action could look like this:
- Texas: file and pay the relevant August return by 21 September.
- Illinois: file and pay the relevant monthly return by 21 September.
- New York: file and pay the relevant monthly or quarterly return by 21 September.
- California: make the 24 September prepayment if applicable, and file and pay the monthly August return by 30 September.
The seller then finishes the process by:
- Filing any zero returns required in states where only marketplace sales were made.
- Keeping all confirmation numbers and reconciliation workpapers.
That final step often matters most during a later audit.
by Ariful | Sep 20, 2026 | UK Updates
TITLE: Australian Tax and Compliance Update: BAS Deadline, Card Surcharge Ban and Trust Tax Changes
Lodge and pay your August BAS by Monday 21 September
If your business reports GST monthly, your August 2026 BAS is due on Monday 21 September 2026. You must lodge the statement and pay any amount owing by the same date.
The ATO’s BAS due-date guidance confirms that monthly BAS obligations are generally due on the 21st day of the following month.
Before submitting, check:
- Sales and GST collected for August.
- Business purchases and eligible input tax credits.
- Imports and international payment fees.
- Payroll, PAYG withholding and instalment amounts.
- Marketplace, payment gateway and currency-conversion reports.
Do not assume that using a registered BAS agent creates an extension for a standard monthly BAS. The August statement remains due on 21 September.
Late lodgment may trigger a failure-to-lodge penalty. Unpaid tax can also attract the ATO’s general interest charge. The Commonwealth penalty unit is now $364 for offences committed from 1 July 2026, increasing the cost of some compliance failures.
Remove card surcharges before the 1 October ban
From 1 October 2026, Australian businesses will generally no longer be able to add a surcharge when customers pay by eftpos, Visa, Mastercard or American Express.
The change applies to:
- Physical card payments.
- Online checkout payments.
- Credit, debit and prepaid cards.
- International cards.
- Mobile wallets and other digital payment channels using covered card networks.
The Reserve Bank of Australia’s payment reform guidance confirms the new no-surcharge framework. Existing rules continue until 30 September, but a surcharge must currently remain within the cost of accepting that payment method.
Update your checkout and accounting systems
You should remove card surcharge settings from your:
- Shopify, WooCommerce and other checkout systems.
- Marketplace payment settings.
- Invoicing software.
- Payment gateway rules.
- Receipts and customer terms.
You may still charge a genuine booking, service or handling fee where it applies independently of the customer’s payment method. Do not relabel a card surcharge as a general fee if it is only charged when a customer pays by card.
For accounting purposes, merchant processing fees will continue as business expenses. If an Australian payment provider charges GST, you may be able to claim an input tax credit where the normal requirements are met.
From 1 October:
- Stop recording card surcharge income as a separate revenue stream.
- Continue recording merchant processing costs.
- Build payment costs into your overall pricing.
- Review GST coding for product, service and platform fees.
- Reconcile payment-provider settlements to your accounting records.
For an Australian e-commerce business in Sydney, Melbourne or Brisbane, this is both a checkout issue and a margin issue. Update your pricing model before the ban starts so the change does not create unexpected losses.
Treat the proposed trust tax as a planning deadline, not current law
Treasury consultation on the proposed 30% minimum tax for certain discretionary trusts closed on 18 September 2026. The proposal is intended to apply from 1 July 2028, subject to final legislation.
The ATO’s current guidance on the proposed minimum tax explains that the measure is aimed at in-scope discretionary trusts, including some family-owned trading structures.
The proposed alternative arrangements may include:
- Restructuring out of the discretionary trust model during a proposed transition period.
- Electing into an excluded election trust arrangement.
- Locking in nominated beneficiaries and fixed distribution proportions.
The 47% warning needs careful interpretation. The proposal does not create a separate 47% trust tax. The figure generally relates to the highest individual marginal tax rate, including Medicare levy. If a beneficiary’s personal tax rate is higher than the 30% trustee-level tax, additional tax may still arise.
An election can also reduce future flexibility. If circumstances change, fixed beneficiaries and fixed proportions may no longer reflect how the family-owned business operates. That is why trustees should preserve distribution records, beneficiary information and trust accounts now.
Do not treat the proposal as enacted law. Monitor the final legislation and keep your trust compliance records ready.
Bendel changes the UPE position, but not all Division 7A risks
The High Court decision in Commissioner of Taxation v Bendel [2026] HCA 18 held that an unpaid present entitlement, or UPE, is not automatically a loan or financial accommodation for Division 7A purposes.
The High Court judgment and the ATO’s decision impact statement provide the current position.
The ATO has accepted the decision and is withdrawing or revising its previous guidance in TD 2022/11. However, Bendel does not make every trust distribution risk-free.
Division 7A issues may still arise where:
- The trust makes payments or loans to shareholders or associates.
- UPE funds are actively used for private benefits.
- A company releases or deals with an entitlement.
- The arrangement involves other forms of financial accommodation.
- Subdivision EA applies to payments or benefits involving a corporate beneficiary.
Treasury is considering whether a legislative response is required. Private groups should therefore retain historic trust distribution records and monitor whether any future law changes could affect existing arrangements.
Expect stronger ATO action on missing lodgments
The ATO reports that non-lodgment prosecutions connected with shadow economy activity increased by more than 80% over two years. Court-imposed fines exceeded $2.7 million.
This enforcement activity affects more than cash businesses. It is relevant to any Australian company that repeatedly misses:
- BAS lodgments.
- Income tax returns.
- PAYG withholding reports.
- Superannuation obligations.
- Other required business statements.
