• Deemed transfers

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Certain transfers of property or services made to another entity may be deemed to have been made to a trust estate if the transfer is connected with a transfer to the trust estate.

    Example 1

    Deemed transfer to a trust estate

    Entity A transfers property to Entity B on condition that Entity B transfers the property to a trust estate. In this case, Entity A would be deemed to have transferred to the trust estate the property transferred by Entity B.

    Example 2

    Marketing of units in a unit trust

    The trustee of a unit trust issues units to Entity A, which acts as manager, underwriter or dealer for the placement of the units. Entity A then disposes of the units to Entity B, which transfers property or services to Entity A as consideration for the acquisition of the units.

    In this case, Entity B is deemed to have transferred the property or services that Entity A originally transferred to the unit trust. In the circumstances, Entity A will not be taken to have transferred property or services to the trust estate.

    Where a partnership has transferred property or services to a non-resident trust estate, each partner is deemed to have transferred property or services in proportion to their interest in the partnership.

    Where a trust estate has transferred property or services to a non-resident trust estate, each person who has transferred property or services to the first mentioned trust estate is deemed to have transferred property or services to the second mentioned trust estate.

    If the partnership or trust estate is in existence at the end of the non-resident trust estate's year of income, any attributable income of the non-resident trust estate is attributed to the partnership or trust estate. If the partnership or trust estate is not in existence at the end of the non-resident trust estate's year of income, any attributable income of the non-resident trust estate is attributed to the partners of the partnership or the original transferors to the trust estate.

    The Tax Office may also treat you as having transferred property or services to a trust if you benefited from a transfer by a company, partnership or trust that ceases to exist.

    If you need further information on deemed transfers, contact the Tax Office.

    Last modified: 05 Dec 2006QC 18000