Pioneering thought — Sladen Legal

A Matter of Trust

, ,

Transfer to a trustee found to be non-dutiable

, ,
Transfer to a trustee found to be non-dutiable

The Victorian Court of Appeal’s decision in MD Commercial Pty Ltd v Commissioner of State Revenue [2019] VSCA 295 was a culmination of the battle between the Victorian Commissioner of State Revenue and the taxpayers’ statutory interpretation of a duty exemption contained in s 35 of the Duties Act 2000 (Vic) (Act) and whether the trustee had to be in a “bare trustee” relationship with no active powers being held by the trustee.

, ,

Trusts and the franking credits trap: can we fix it?

, ,
Trusts and the franking credits trap: can we fix it?

Beneficiaries of a unit trust may only claim franking credits if they are a “qualified person” in relation to the franked dividend. In order to be a qualified person the taxpayer must satisfy both the related payments rule and the holding period rule.

, ,

TD 2019/D6 and TD 2019/D7: (further) unintended consequences?

, ,
TD 2019/D6 and TD 2019/D7: (further) unintended consequences?

While consistent with recent ATO views, TD 2019/D6 and TD 2019/D7 provide minimal clarification on the taxation of Australian discretionary trusts distributing capital gains to foreign beneficiaries.

Trusts, Income Tax, CGT And Foreign Residents

Trusts, Income Tax, CGT And Foreign Residents

The rules for the taxation of trusts are complex and in need of reform. A point that has been made many times since Hill J observed in Davis v FCT1 that “the scheme of Division 6 calls out for legislative clarification, especially since the insertion into the Act of provisions taxing capital gains as assessable income”.