Checklist · Trusts & Estate Planning

Reconciliation of unpaid present entitlements to a private company, while the ATO reviews Division 7A

Reconciliation of amounts a trust has distributed to a private company and not paid. The ATO trust-entitlements page, last updated 2 July 2026, says the page is under review after a High Court decision and points to a decision impact statement.

Kind
Checklist. Steps or checks to work through and tick off.
Where it applies
Australia, Commonwealth
AI use
Yellow You and the tool draft together, with you directing. You check every statement you rely on.
Law stated as at
22 October 2026
Status
Maintained. Checked on 22 October 2026 against the authority it cites, for Australia and Commonwealth.
Version
1
Source
Written for this library

When to use it

Use to list unpaid present entitlements owing to a corporate beneficiary and the documents on the file. Do not use it to decide whether Division 7A applies. Read the decision impact statement first.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

AI may list entitlements, payments and loan documents from the accounts. It must not say whether Division 7A applies.

AI may

  • Enter the year, the amount of the entitlement and the amount still unpaid, from the ledger the lawyer names
  • List any loan agreement or payment on the file, with its date
  • Flag that the ATO page is marked as under review

AI must not

  • Must not state that an unpaid entitlement is a loan or a dividend
  • Must not apply the page's description of financial accommodation as if the review had finished
  • Must not draft a complying loan agreement

The lawyer checks

  • The decision impact statement linked from the page has been read before any advice
  • Each row is an amount from the accounts, not a legal characterisation
  • Section 100A is not decided in this reconciliation. The library has a separate task for it, and that part of the ATO page was not used
  • TD 2022/11 is not treated as the current answer while the page says the content is under review

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

More in Trusts & Estate Planning

All precedents for Trusts & Estate Planning · Tasks and AI use in this area