Published on 28 Aug 09
by NATIONAL DIVISION, THE TAX INSTITUTE
During their lifetime trusts are exceptionally flexible structures with distinct tax and wealth protection advantages. As they reach the end of their useful life, extracting the value they harbour can be tricky. This paper considers some of the practical difficulties likely to be encountered along the way and on vesting.
Covered are effective distributions:
- unit trusts: What constitutes a non-assessable distribution? Timing advantages under an E4;
- planning ahead to fully utilise the small business CGT concessions;
- do hybrid trusts present particular winding up problems?;
- the trustee calls it "income" but the ATO calls it "capital". Does name-calling make a difference?;
- capital distributions and the legitimacy of following the Practice Statement LA 2005/1; and
- the impact of the Board of Taxation's Review of MITs.
Ken is a tax and commercial law partner in the Sydney office of SBN Lawyers. He has extensive experience in all aspects of tax (including State taxes) as well as business structuring, asset protection, succession planning and trust and estate law. Ken is a National Councillor of the Tax Institute and a member of the NSW Divisional Council and Education Committee. He is also a member of the Advisory Panel to the Board of Taxation and has recently been involved as a member of the Working Group on Managed Investment Trusts.
Current at 13 January 2009
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