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Good Deeds Matter - Bamford v. Commissioner of Taxation

Published on 24 Jun 2009 | Took place at Swissotel, Sydney , NSW

This event was suitable for 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.

Bamford may prove to be a landmark decision in relation to the taxation of trust beneficiaries. Practitioners and the ATO have struggled for many years to get trust distributions right but to little avail. Unless the High Court decides to grant the Commissioner special leave and reverse the decision, two very contentious matters will have been resolved by the Federal Court. The proportionate view now prevails. More significantly “income of the trust estate” is now dependant on the terms of the Trust Deed. Matters addressed by this event included:

  • the lead up to Bamford – why it matters to the Commissioner
  • why the income according to ordinary concepts notion is the Commissioner’s preferred stance
  • what was special about the circumstances in Bamford that brought out the issues
  • what was decided by the Full Federal Court
  • reconciliation with Cajkusic
  • what the ATO is likely to do
  • what the decision means for drafting Trust Deeds
  • what should be done about trust income distributions this 30 June.
Robert Richards was the instructing solicitor in Bamford and has lived with the matter since day one. He is ideally placed to explain the significance of the decision for every day practice.

Individual sessions

Trust distributions after Bamford

Author(s):  Ken SCHURGOTT

This paper covers:

  • the "share" issue
  • the "income" issue
  • adopting subsection 95(1) principles
  • ATO views
  • appeal to the High Court
  • the operation of PSLA 2005/1(GA)
  • other "income" issues
  • legislative change
  • implications of Bamford.
Materials from this session: