Daily Archives: December 18, 2017

TR 2017/D10 – Vesting of Trusts – draft ruling goes through extending a trust’s vesting date; CGT consequences of vesting a trust; and Taxation of trust net income after the vesting date

On 13 December 2017, the ATO issued a Draft Ruling on trust vesting: Draft TR 2017/D10. This sets out the Commissioner’s preliminary views about the vesting of a trust, changing the trust’s vesting date and the income tax consequences of vesting.  Amending a Trust’s Vesting Date A trust deed will nearly always specify a date on…

Whitby Land Company Pty Ltd (Trustee) v. Deputy Commissioner of Taxation – Decision Impact Statement – alternative assessments on beneficiaries and the trustee (under both s98 & s99A) held valid – not ‘tentative’

Précis The case deals with the validity of ‘alternative assessments’ – whether ‘tentative’ or not – upholding established law and the Commissioner’s practices. This was in the context of assessing a trust’s income. Brief summary of facts The applicant was the trustee of a discretionary trust. Because the Commissioner had insufficient information to determine whether…

Vic: State Taxation Acts Further Amendment Bill passed – payroll exemption for ‘for profit’ training organisations; absentee owner surcharge – extra exemption; foreign purchaser extra duty for first home owner

On 14 December 2017, 4 amendments were made to the State Taxation Acts Further Amendment Bill 2017 in the Legislative Council. They concern inserting a definition of “business day”, and other minor amendments. The Legislative Assembly subsequently agreed to those amendments, so the bill has passed both houses. The Bill contains various amendments including: to the Payroll Tax…

ATO suspends its audit ‘guidance’ on professional firm structures that are ‘too effective’ in income splitting – partnerships of discretionary trusts and Everett assignments

On 14 December 2017, the ATO announced that it was suspending its 2015 ‘Assessing the Risk: Allocation of profits within professional firms guidelines’ and ‘Everett Assignment web material’ – saying that it was to be reviewed in 2017. It says that: “In reviewing the guidelines we have become aware they are being misinterpreted in relation to arrangements that go…