Trusts and the franking credits trap: can we fix it?
ATO announces extension for Division 7A compliance
Capital gains, discretionary trusts, and foreign residents – first blood to the ATO
The Australian Taxation Office (ATO) position for several years has been a foreign beneficiary distributed a capital gain made by an Australian discretionary trust on an asset that is not taxable Australian property is assessed on the capital gain even though that would not occur if the foreign resident made the gain directly, or through a fixed trust. Some commentators disagree with that view, the Federal Court in a recent case agreed with the ATO position in what may be the first skirmish of a battle through the courts on this issue.
Transfers to Bare Trusts: Court of Appeal Provides Clarity on Duty Exemption
The Court of Appeal handed down its decision in MD Commercial Pty Ltd v Commissioner of State Revenue [2019] VSCA 295 in late 2019. The decision has provided further clarity on the application of section 35 of the Duties Act 2000 (Vic) which provides an exemption from duty for transfers to bare trusts.
TD 2019/D6 and TD 2019/D7: (further) unintended consequences?
Sladen snippet – Victorian discretionary trust deeds must be amended by 1 March 2020 to avoid foreign duty surcharge
The State Revenue Office (SRO) have announced that its current “practical approach” in relation to whether trustees of discretionary trusts trigger the foreign duty surcharge will cease from 1 March 2020.
Sladen Snippet - It’s not too late for your NSW discretionary trust holding residential land
As outlined in our previous article, the State Revenue Further Amendment Bill 2019 (NSW) was introduced to NSW Legislative Assembly on Tuesday 22 October 2019, and proposed to make changes to New South Wales land tax and duty legislation.
Sladen Snippet - can mistakes in trust deeds be rectified?
HOW FAR CAN A SPLIT TRUST BE SPLIT?
The Australian Taxation Office (ATO) sought to address this question through a public determination (first issued in draft as TD 2018/D3) that considered a range of features of an arrangement, that when considered together, were deemed to have resulted in the creation of a new trust over assets formerly held by an original trust.
Sladen Snippet - Government introduces Bill on the taxation of testamentary trusts
The Federal Government has introduced the Treasury Laws Amendment (2019 Measures No. 3) Bill 2019 (Bill), which seeks to ensure that tax concessions available to minors on income on distributions by the trustee of a testamentary trust will only apply in respect of income that is generated from assets of the deceased estate transferred to that testamentary trust (or the proceeds of the disposal or investment of those assets).
Sladen snippet – does your discretionary trust hold residential land in NSW? If so, you may need to amend its deed by 31 December 2019
As outlined in our previous article, under the proposed changes to New South Wales land tax and duty legislation, a trustee of a discretionary trust (including testamentary trusts) will be deemed to be a “foreign trust” if the terms of the trust do not prevent a foreign person from being a beneficiary of the discretionary trust. Importantly, these changes are proposed to have retrospective effect to the 2017, 2018 and 2019 land tax years and can catch dutiable transactions back to 21 June 2016.
Sladen Snippet – NSW Discretionary Trusts to be Deemed Foreign Trusts Under Proposed Legislation
Sladen Legal launches interactive, tailored professional development tool, Sladen Learning.
Sladen Legal have launched Sladen Learning, an online professional development platform delivering interactive, specialist courses to professionals Australia wide. Developed by the team of lawyers at Sladen Legal, Sladen Learning combines information, resources and activities to deliver engaging and educational short courses.
Sladen Snippet - trustee obligations on the ATO radar
Sladen Snippet - What does the election mean for tax?
Part 2: International tax series: income tax consequences for non-resident beneficiaries
Part 1 International tax series: are you a resident or non-resident?
MD Commercial: transfers to “bare” trustees failed to qualify for an exemption from Victorian stamp duty
The Victorian Supreme Court in the decision of MD Commercial Pty Ltd & AJ Commercial Pty Ltd v Commissioner of State Revenue [2018] VSC 560 confirmed that certain transfers of land to trustees were not exempt from duty under section 35 of the Duties Act 2000.
