6. Date of effect

These principles were originally released on 9 June 1999. This revised statement of principles reflects the High Court decision in Commissioner of Taxation v. Commercial Nominees of Australia Limited and the application of that decision. The ATO believes there has not been any change to the underlying principles as enunciated by the Commissioner on 9 June 1999.

These principles will be applied to arrangements implemented both before and after the date of their release. Nonetheless, the ATO recognise the uncertainty of the relevant law, the diversity of opinions held by experts, the past absence of ATO guidance and the serious consequences arising from the perhaps inadvertent termination of a trust estate.

For these reasons, the ATO will generally only treat arrangements already implemented as having resulted in a new trust estate where, in terms of the preceding principles, there are very strong indicia that the trust relationship has been fundamentally redefined.

Commissioner of Taxation
29 August 2001

    Last modified: 20 Apr 2012QC 16266