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  • Advice under development – trust specific issues

    We are developing advice and guidance on the following trust specific issues.

    [3885] Trust splitting

    Title
    Final Taxation Determination
    Income tax: will a trust split arrangement of the type described in this draft Determination cause a new trust to be settled over some but not all assets of the original trust with the result that CGT event E1 in subsection 104–55(1) of the Income Tax Assessment Act 1997 happens?

    Registered
    13 September 2017

    Purpose
    The final Determination will set out the Commissioner's view on the tax implications of arrangements that are commonly referred to as ‘trust splitting’, in particular whether splitting the trust causes capital gains tax event E1 to occur.

    Expected completion
    December 2019

    Comments
    Draft TD 2018/D3 published on 11 July 2018. Comments period closed on 10 August 2018. We are considering comments and issues raised during consultation.

    Contact
    Peter Hawkins, Private Wealth
    Phone: (08) 8208 1262
    Peter.Hawkins@ato.gov.au

    See also:

    [3942] Section 100A reimbursement agreements

    Title
    Draft Taxation Ruling
    Income tax: section 100A: reimbursement agreements – purpose and ordinary dealing exclusions

    Registered
    October 2018

    Purpose
    The draft Ruling will set out the Commissioner’s preliminary views on the exclusions from a ‘reimbursement agreement’ for:

    • agreements not entered into with a purpose of eliminating or reducing someone’s income tax, and
    • agreements entered into in the course of ordinary family or commercial dealings.

    Expected completion
    To be advised

    Comments
    We expect to commence targeted consultation on this issue during November 2019.

    Contact
    Justin Dearness, Tax Counsel Network
    Phone: (07) 3213 5745
    Justin.Dearness@ato.gov.au

    Last modified: 03 Dec 2019QC 57882