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Trust Cloning

Published on 29 Apr 2008 | Took place at Hotel Windsor, Melbourne , VIC

The hottest tax topic is trust cloning and the ATO is becoming increasingly active in this area. Cloning typically involves the transfer of assets out of one trust into an identical trust, perhaps for the benefit of particular family members.

The ATO has recently taken a very restrictive view as to which trusts may qualify. This has resulted in considerable debate with the ATO and between advisors.

This seminar gave the views of an advisor and the ATO. Specifically, it covered:

  • trust cloning v splitting – the difference
  • trust cloning - how it works
  • CGT, stamp duty and income tax implications
  • what the provisions say
  • what the ATO has been saying:
    • TR2006/4
    • later pronouncements
  • solutions in light of the ATO’s requirements.

Individual sessions

Some CGT aspects of 'trust cloning' - an ATO perspective

Author(s):  Glenn DAVIES Glenn Davie's paper is available for free on the ATO's site. Please use this link rather than the Download Now button.

Materials from this session:

Trust cloning - a practitioner’s perspective

Author(s):  Paul HOCKRIDGE

This paper covers:

  • what trust cloning is
  • when it might be used and by whom
  • what the Australian Taxation Office (ATO) has said about it
  • whether the author considers the ATO to be right and how to work around the ATO's rules.
Materials from this session: