Author(s): Joe LOMBARDO From 4.00pm 13 August 1998 a closely held trust that makes a distribution to another trust, must in many cases identify the beneficiaries who will ultimately be entitled to any taxable or tax-preferred distributions. Where the ultimate beneficiaries are not correctly identified within the specified period a penalty is imposed. The ATO considers the new rules are 'conceptually manageable'. The author is not so sure that the new rules are commercially or practically manageable.
Author(s): Geoff LLOYD ATO document which sets out the statement of principles to guide taxpayers, tax advisors and ATO decision makers on when the Commissioner will treat changes to a trust as giveng rise to a resettlement. Specific scenarios discussed include: addition or removal of beneficiaries; extending the duration of the trust; changes in trust property; changes of trustee; changes to the terms of the trust.