On 11 January 2016, the Commissioner issued a ‘Discussion Paper’ (see link below) to assist in drawing a second draft of TR 2014/D1 Income tax: employee remuneration trusts, which was published on 5 March 2014. Comments are sought be 12 February 2016.

Comments on the first draft (TR 2014/D1) have been considered and form an important impetus for this Discussion Paper.

The first draft of this ruling (TR 2014/D1) sought to explain, in a preliminary way, the Commissioner’s views on the taxation consequences for employers, trustees and employees, who participate in employee remuneration trust arrangements (ERT) that are established by an employer as a means of delivering benefits to employees via a trust – mainly arrangements that fall outside the specific legislative scheme for Employee Share Schemes (in Div 83A of the Income Tax Assessment Act 1997). This draft intended to clarify ambiguous or grey areas of the law relating to ERT’s. The new draft is intended to do the same.

To read the full Discussion Paper – click here

Posted 28 January 2016