Trustee obligations for the due administration of charitable trust funds
Source: Taxation In Australia Journal Article
Published Date: 1 Jun 2012
In FCT v Bargwanna, the High Court upheld the Commissioner of Taxation’s decision to disallow an application for endorsement of a trust fund as a charitable trust fund because a special statutory condition which requires that a trust fund be applied to its charitable purposes was not satisfied. This article examines the High Court decision in detail, and notes that it is an authority on the obligations of trustees to properly administer a trust fund, both under general law and income tax law. It also highlights that income tax exemption, once granted to a charitable trust fund, is not perpetual but requires an annual analysis by the trustees of whether the trust fund assets are actually being applied to its charitable purposes.
The decision reinforces the importance of having an appropriately drafted trust deed with clearly defined charitable objects and trustee powers, and the obligations that trustees have under general law to properly administer the trust.
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
Details
- Published By: Dianne Sisak CTA
- Published On:1 Jun 2012
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.
Copyright Statement
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
Share this page