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A Deed, a Deed, my Kingdom for a Deed

Published on 30 Sep 2009 | Took place at Perth Concert Hall, WA

Trust Deeds are again in the spotlight with Bamford and Cajkusic cases potentially redefining how we treat income and distributions for Trusts; you can lose your kingdom if you get the Deed wrong!

The Full Federal Court in Bamford has confirmed the Deed is the ultimate decider in respect to Trust Distributions and that the Proportional view prevails but what do we need to do with minutes and resolutions to be certain of the intended outcomes? This event considered questions such as:

  • do my trust minutes now need to be changed?
  • does the Trust Deed need to be amended, again?
  • should I be recording Capital Gains and Franking Credits on revenue account?
Review your files, how will the ATO treat income and distributions if a major deduction is denied? Does each beneficiary receive more income? Is the additional income allocated to a ‘balance’ beneficiary? Do the unseen default beneficiaries end up with a surprise? Can a client end up with a major tax liability and yet not be entitled to any funds from the Trust?

This event was aimed at anyone involved in drafting trust deeds, advising on trust structures and their taxation consequences and those responsible for preparing trust distribution minutes and tax returns.

Individual sessions

Bamford’s case and beyond

Author(s):  Syd JENKINS

The use of trusts as vehicles to carry on small and medium size businesses and as investment vehicles has expanded rapidly since the demise of the Ralph Report recommendations on trusts. Mooted changes never made it past the discussion stage and trusts, in all forms, were once again recognized as a flexible, tax effective and relatively cheap vehicle to be utilized in particular circumstances. A growth in tax litigation has also arisen in recent years and one senses that the Taxation authorities and taxpayers are testing the boundaries of tax trust law.

This paper examines developments in some of these areas.

Materials from this session: