Australian beneficiaries of foreign trusts will now be taxed on non-TAP capital gains distributed to them as ordinary income!
06 Feb 18 |
WEEKLY TAX BULLETIN
Issue: Issue 1, 5 Jan 2018
Pages: pp. 2-4
On 13 December 2017, the ATO finalised 2 tax determinations. The combined effect of these determinations is that capital gains made by a foreign trustee in respect of non-taxable Australian property (TAP) that are distributed to Australian beneficiaries will be taxed in the hands of the beneficiary as ordinary income pursuant to s 99B of the ITAA 1997 and not as a capital gain.
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Clint is a partner at Arnold
Bloch Leibler and leads the Sydney taxation
practice. Clint advises across most taxes,
with particular expertise in corporate and
international tax, the taxation of financial
instruments and transactions, and the
management of tax audits and disputes with
the ATO. Clint is the author of numerous
tax articles, a regular presenter, and is
currently a working member of The Tax
Institute’s Large Business and International
Committee. In 2018, Clint won The Tax
Institute’s Corporate Tax Adviser of the Year
Award and is the National Chair of the Law
Council of Australia’s Taxation Committee.
- Current at
26 June 2019
Peter Scott, Peter Scott practices in Arnold Bloch Leibler’s taxation group. Peter provides strategic and technical tax advice to a diverse range of Australian and international clients, public corporations, private groups, and high-net-worth individuals. He advises across most areas of tax with a particular focus on corporate and international tax, deals, employee share schemes, trusts, and tax controversy matters. Peter graduated from the University of Tasmania in 2013 with a Bachelor of Business (Accounting) and Bachelor of Laws with first class honours in law. Peter worked as a tax analyst at a Big 4 accounting firm before joining the firm as a lawyer in early 2015. Peter was admitted to practice in August 2014.
- Current at
12 February 2019