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A matter of trusts: PSLA 2004/3: Who is liable for tax on capital gains derived by a trust?

Published on 01 Jun 05 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

Since the introduction of the capital gains tax provisions in September 1985, the treatment of a net capital gain derived by a trust and its interaction with section 97 of the Income Tax Assessment Act 1936 has been problematic. Whilst the problem requires legislative clarification or change, early in 2004 the Commissioner of Taxation adopted an administrative practice which, in the applicable circumstances, provides a fair and workable solution by including any 'excess of' net income over trust accounting income resulting from a capital gain in the assessable income of the capital beneficiary who is entitled to the excess.

Author profile:

John Ciardulli CTA
John is a Group Tax Manager for Becton Property Group. Current at 01 March 2009 Click here to expand/collapse more articles by John CIARDULLI.
 
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