Published on 28 Sep 2005
| Took place at Hilton Hotel, Brisbane
The number of trusts used in Australia continues to grow at a tremendous pace. This is mainly
because of the essential flexibility of trusts, tax advantages and the potential benefit of asset
protection. The challenge is to stay up to date with changes which have occurred legally and in the eyes of the regulatory authorities.
These materials provide you with a great opportunity to determine whether trusts remain a
viable option for your clients' investment and business structures.
They are designed to lead you through the complex rules, challenges and current changes to enable you to apply these to your clients circumstances.
Get a 20% discount when you buy all the items from this event.
Loans from trusts to related parties can have significant taxation implications. They need to be monitored and reviewed in terms of the potential application of Division 7A, the debt forgiveness provisions and even Part IVA. Also there are a multitude of difficulties that have to be managed when trusts are varied or re-organised. This case study takes a practical look at the most significant issues to be aware of. Topics include:
Division 7A: Section 109XA-XC
traps for the unwary applying section 109 XB
debt forgiveness and debt /equity provisions
interest deductibility issues
what is a resettlement?
must a resettlement create an adverse capital gain result?
satisfying entitlements to income by distributing by specie
CGT consequences for the trustee and beneficiary
accessing CGT rollover exemptions
GST implications of in specie distributions
implications of recent cases
accounting for trust income which is defined as 'tax law net income'.
This paper was originally presented by Brian Richards at the 'A Matter of Trusts' seminar held in Brisbane on 28 October 2004. Minor changes have been incorporated to update the paper for presentation by Mark Molesworth at the 'Trusts Intensive' seminar held in Brisbane on 28 September 2005.