Source: The Tax Specialist Journal Article
Published Date: 1 Feb 2013
For various reasons, it may become necessary or desirable to extend the life of a trust beyond the original vesting or perpetuity date. The question may then arise whether such an extension constitutes an amendment to the trust, or amounts to a resettlement, thereby perhaps triggering a CGT event or other taxing point. A detailed knowledge of the statutory history must be brought to bear on each problem, as some reforms are comparatively more modern than the deeds about which advice is sought, and it is not always clear which law has applied from time to time to a settlement.
This article discusses recent developments in the approach of the Commissioner of Taxation to creation and amendment of trusts, and Australian and English case law on the power to amend. The article concludes with discussion of practical matters including the kinds of inquiries advisers should make and proposals which may be considered.
More by David W Marks KC
Big things in the sea - Journal 12 Oct 2023
The rule against perpetuities – opportunities for advisers - Journal 17 Aug 2023
Rule of perpetuities / vesting of trusts - Presentation 01 Jun 2023
Rule of perpetuities / vesting of trusts - Video 01 Jun 2023
Rule of perpetuities / vesting of trusts - Audio 01 Jun 2023
Jurisdictional boundaries - come and get me - Journal 01 Apr 2023
Jurisdictional boundaries and immunities - Come and get me - Presentation 28 Jul 2022
Jurisdictional boundaries and immunities - Come and get me - Paper 28 Jul 2022
Jurisdictional boundaries and immunities - Come and get me - Video 28 Jul 2022
Algorithms, discretions and decisions in the "robo" age - Journal 01 Feb 2022
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags