Trusts 2018

Trust splitting: The ATO's controversial new TD 2018/D3

Source: Taxation In Australia Journal Article

Published Date: 1 Oct 2018


The release of TD 2018/D3 represents the ATO's first public view on the topic of trust splitting and draws hard-line conclusions regarding the CGT consequences of trust splitting arrangements. The draft determination concludes that a trust split will usually trigger CGT event E1, which will come as a surprise to many taxpayers, given the ATO's previous private ruling decisions on the topic. The draft determination fails to offer legally sound explanations or provide sufficient case law authority and, worse, is proposed to apply with retrospective effect. This article examines the circumstances in which trust splitting usually arises; the ATO's views in previous private rulings and in the current draft determination; and a number of concerns raised by the draft determination in its current form.

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


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))


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.


Trusts 2018

Share this page