The ATO on Thur 28.6.2012, released Practice Statement Law Administration PS LA 2012/2 (To advise tax officers of the approach to be taken in the raising and recovery of income tax and GST liabilities of a trust where there is a change of trustee during or following an income year or a tax period). It clarifies the approach of tax officers in seeking to recover an amount of debt, including how procedures in litigation should be applied.
Broadly, the Practice Statement says the trustee at the end of the income year or tax period is the entity that has the tax-related liability for income tax or GST for that period. It indicates that this is the case even if there has been a change of trustee during or after the income year or tax period.
DATE OF EFFECT: 28 June 2012.
[LTN 123, 28/6]