There are major areas of confusion and uncertainty in the tax treatment of trusts. The High Court's decision in Bamford's Case and the ATO's response has left more issues unresolved than were answered. The Government is conducting a public consultation process with a view to rewriting the trust income tax. In March, changes were announced to allow "streaming' of franked dividends and capital gains. In April, the Government announced that it would defer considering the update and rewrite of the trust income tax provisions, and released Exposure Draft legislation limited to the "streaming' changes.
This event covered:
- the interim measures and issues resolved and unresolved
- amendment required to your client's trust deeds (and whether any amendments are really necessary)
- how the taxation of trusts landscape may look in the not too distant future.