Recent Developments in the Taxation of Trusts

Ensure you are equipped to navigate complex trust structures with confidence by joining us to cover key guidance updates, recent case law, and practical implications for advisers

There have been many recent developments affecting the taxation of trusts in Australia, with big impacts on small businesses and family-owned groups where discretionary trusts are a common ownership structure.

As a result, the landscape for practitioners and their clients has changed, requiring advisors to guide their clients through the new risks and issues in urgently reviewing their existing structures and transactions to consider the impacts of:

• The impacts of the Bendel case regarding ‘financial accommodation’ on the ATO strategy for Division 7A ‘Unpaid Present Entitlements’ as articulated in TD 2022/11 – noting the appeal
• Continuing impacts of the Bamford decision on ATO concerns about ‘mismatches’ between tax and accounting income in calculating the ‘net income of the trust estate’ – frequently mentioned in Taxpayer Alerts and Practical Compliance Guidelines (like those for Professional Firm Remuneration in PCG 2021/4)
• The ongoing ATO compliance approach for ‘reimbursement agreements’ under the specific anti-avoidance rule in section 100A ITAA 1936 – noting the interesting decisions of Guardian and BBlood cases and the interaction with Part IVA in both
• Part IVA and trust distributions more generally that result in the payment of less tax – following the FFCt decision in Minerva
• Issues with restructuring Discretionary Trust arrangements – noting the respective findings in the Ierna cases for the trustee and beneficiaries
• Ongoing issues flowing from the ATO’s professional firm profit allocation guidelines in PCG 2021/4 for trust structures connected to professional firms – noting the interactions with s100A
• Family Trust Distribution Tax issues – noting increased ATO focus on FTEs and IEEs in their Top 500 and Next 5000 Reviews of private groups
• Impacts of the general trust law cases on exercise of discretion between potential beneficiaries for family trust taxation – as in the Owie case

The session will explore and explain these issues and resulting risks in practice, including working through practical case studies that illustrate the potential impacts on small business and private group clients (and their tax advisors).

Learning Outcomes:

Participants should get an improved understanding of the current state of trust taxation in Australia and the particular areas of risk for their clients and their associated discretionary trusts.

Suited to:

Accountants, tax practitioners, BAS agents, lawyers and other practitioners serving small businesses, private groups and wealthy individuals.

This On Demand recording Includes: 

• Recording of the Live Webinar, which can be viewed multiple times, for as long as required 
• Presenters contact details for follow up questions 
• CPD Quiz
• CPD Certificate 
• CPD Report – Logged automatically 
• PowerPoint Presentation
• Verbatim Transcript, with Searchability
• Supporting Documentation