The Tax Institute has welcomed the Government’s consultation paper on reforming the taxation of trusts, which marks the start of the process of modernising years of complexity in the law.
“Ongoing uncertainty over the tax treatment of trusts emerges as one of the top issues for reform for tax professionals,” said The Tax Institute’s Senior Tax Counsel, Robert Jeremenko.
“The legislation governing taxation of trusts is more than 50-years-old and must be brought into the 21st Century.
“The Tax Institute has long called for reform in this area of the tax law in which legislative change is well overdue.
“Recent Court decisions have highlighted the ongoing compliance difficulties faced by the 600,000 trusts in Australia, many of which are used by small to medium businesses.”
The Tax Institute praised the Government for releasing the consultation paper and for agreeing to tackle an inherently complex area of the law.
“The Government is to be congratulated for grasping the opportunity to modernise the taxation of trusts as part of their ongoing reform process, as recommended by the Henry Tax Review,” Mr Jeremenko said.
There is a significant program of work ahead to reform the trust tax provisions but we welcome the Government’s paper as an important starting point in the reform.
There is a relatively tight consultation timetable, but The Tax Institute will be closely involving its members in discussions on the various proposals for reform.
The Tax Institute is the country’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia. The Tax Institute supports the tax profession and its members by holding more than 350 tax events each year. It conducts educational courses, develops publications, maintains an online information resource and provides a comprehensive tax library and research service. It works to continually improve tax law and its administration.
For more information contact: Robert Jeremenko, Senior Tax Counsel, The Tax Institute, 0468 987 300.