Taxation Ruling

IT 2385W - Notice of Withdrawal

Income tax: expenses incurred by beneficiaries of discretionary trusts

  • Please note that the PDF version is the authorised version of this ruling.

Notice of Withdrawal

Taxation Ruling IT 2385 is withdrawn with effect from today.

1. Taxation Ruling IT 2385 explains the Commissioner's position that a beneficiary of a discretionary trust is not allowed deductions in relation to trust distributions unless it is established that the beneficiary is 'presently entitled' to the trust income when the beneficiary incurs the expenditure.

2. Taxation Ruling IT 2385 is withdrawn as it is replaced by draft Taxation Determination TD 2017/D4 Income tax: deductibility of interest expenses incurred by a beneficiary of a discretionary trust on borrowings on-lent interest free to the trustee which articulates the same principles.

Commissioner of Taxation
13 December 2017

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References

ATO references:
NO 1-AVV9E6U

Related Rulings/Determinations:

IT 2385