You are required to prepare a written research assignment that addresses one of the provided topics below. The purpose of the task is for you to demonstrate high-level critical reflection and analytical reasoning skills in the context of the application of Australian taxation law and taxation law policy. You must undertake academic research which demonstrates the following: 1. An in-depth your understanding of how the specific tax law applies, 2. The policy context of the law and if relevant how other jurisdictions deal with similar issues, 3. Critical reflection as to whether the law achieves its stated purpose aligns with principles of good tax policy or could be improved/amended. These critical reflections should be supported by the research you have undertaken as well as your own independent thought.

TOPIC:

Division 7A (treatment of private company loans) - discuss and critically evaluate Division 7A as a specific anti-avoidance provision. You should include a discussion of the overall policy objectives and your evaluation of whether the Division currently meets these objectives or whether further amendments are necessary.