Publication date: 04 Mar 11 |
Source: THE TAX INSTITUTE
Assistant Treasurer Bill Shorten’s announcement of consultation on legislating for certainty in taxation of trusts is an important step in undoing years of complexity, according to The Tax Institute.
“Taxation of trusts has consistently been highlighted by Tax Institute members as one of the most pressing areas for tax law reform,” said Senior Tax Counsel Robert Jeremenko.
“The Tax Institute has long called for reform in this area of the tax law.
“Better aligning the concepts of ‘income of the trust estate’ and ‘net income’, as well as enabling streaming of capital gains and franked distributions is a positive first step along the road to simplified trust tax laws that will benefit thousands of taxpayers.
“This announcement and the accompanying consultation paper is a welcome outcome as a result of sustained arguments by the Tax Institute over many months.
“This is the next step in the Government’s commitment to update Australia's trust taxation laws and is extremely welcome.”
Mr Jeremenko said the need for reform in this area has been amplified by the High Court's Bamford decision and more recent Federal Court cases; the Henry Tax review recommendation; the Treasury 'Red Book' advice to the Government; and the continuing difficulties experienced by tax professionals who have long called for reform.
“We’re delighted that the Assistant Treasurer chose our 26th National Convention in Brisbane to announce the consultation,” Mr Jeremenko said.
The National Convention coincides with a re-branding for The Tax Institute, formerly known as the Taxation Institute of Australia.
The Taxation Institute is Australia’s leading professional association in tax. Working together with the tax profession they aim to improve the tax system and the delivery of tax services through education, sharing of information and consultation.
For more information:
Robert Jeremenko, Senior Tax Counsel, The Taxation Institute, T: 02 8223 0011, M 0468 987 300
Craig Regan, Lighthouse Communications, 02 9692 8811, 0408 448 527.