High Court decides FCT v Carter
Source: Taxation In Australia Journal Article
Published Date: 1 Jul 2022
The High Court decision in Carter disturbed a widely accepted position regarding the tax impacts of beneficiaries disclaiming their entitlement after the financial year has ended. The beneficiaries in this case made several attempts to disclaim their interests, all after the end of the financial year. The court considered the equitable doctrine of disclaimer by a beneficiary of their interests in a discretionary trust and analysed s 97 of the Income Tax Assessment Act 1936 (Cth). Interpreting the wording of s 97 quite tightly in the context of Div 6, the High Court held that any disclaimer had to happen before the end of the relevant financial year to change the tax outcome for any disclaiming beneficiary, while recognising that this decision could have unfair results in some circumstances. Like many other practitioners, the author advocates for a retrospective legislative amendment to prevent such unfairness for past or future disclaimers.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Details
- Published By: Bruce Collins CTA
- Published On:1 Jul 2022
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page