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Tax case: Trust loss scheme a “scam”


Raftland Pty Ltd v FC of T [2006] FCA 109.

The Federal Court has affirmed the Commissioner of Taxation’s (“Commissioner”) amended assessments totalling $4.205 million after finding that a taxpayer’s purported distributions of income to a unit trust with accumulated tax losses were a sham. The Court also held that the trust stripping provisions of s 100A of the Income Tax Assessment Act 1936 (“ITAA36”) applied. As a result, the income that was deemed not to have been distributed was assessable to the trustee under s 99A.

Author profile:

Anna Tang FTI
Anna Tang • Senior Associate, Commercial Anna is a senior associate in the Tax and Revenue team of Maddocks. Anna has more than 7 years' experience in taxation (income tax, GST and stamp duty) and commercial law. Anna's clientele has been predominately made up of small to medium enterprises ranging from information technology to property developers and their accountants and financial advisors. With a strong technical knowledge, Anna regularly provides direct and indirect tax advice on structuring of businesses and transactions, mergers and acquisitions, corporate reorganisations, sale of businesses, joint ventures and property developments, succession planning and liquidations. Current at 21 October 2011 Click here to expand/collapse more articles by Anna TANG.
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