Published on 01 Nov 99
by THE TAX INSTITUTE
A submission prepared by the Taxation Institute of Australia, the Institute of Chartered Accountants in Australia, the Australian Society of CPAs and the
Australian Taxpayers Association concerning the Ultimate Beneficiary Statements - application of paragraph 254(d) of ITAA 1936.
We do not believe that s 254(d) operates to enable a head trust to retain UBNDT from a present entitlement. The UBNDT is not a tax in respect of "income, profit or gains".
The purpose of the UBNDT is to impose a tax when correct information is not provided to the ATO by the head trustee or is not given by the required time (i.e. the head trustee lodges the required information late). The new provisions do not attempt to tax the economic gain. The following is an extract from the TIA's previous submission which also supports the above contention.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
AUSTRALIAN SOCIETY OF CERTIFIED PRACTISING ACCOUNTANTS
TAXATION INSTITUTE OF AUSTRALIA