The fact that the Commissioner of Taxation sought fit to take these issues to the High Court demonstrates the uncertainty in this area of the law. The Bamford judgment of the High Court attempted to provide judicial clarity to a confused area of tax law - the area dealing with trusts.
The Bamford Case and the DIS still leave many issues in relation to the taxation of trusts unresolved. In the DIS, the ATO acknowledges there remains considerable uncertainty about the application of the law in this area.
The Taxation Institute will be continuing to advocate for the Government to step in with a legislative solution on this issue.