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Does streaming trust income still work? The ATO's New Era for Trusts The Decision Impact Statement on Bamford

Published on 17 Jun 2010 | Took place at Swissotel Sydney, Sydney , NSW

On 30 March 2010, the High Court handed down its judgment in Bamford & Ors v Commissioner of Taxation. The High Court decision in Bamford has widely been considered to be confined to two narrow issues:

  • the meaning of “income of the trust estate”
  • the meaning of “share” and the application of the proportionate approach
The ATO’s Decision Impact Statement on Bamford released on Wednesday 2 June 2010 treats the Bamford decision as raising many other issues which are fundamental to the taxation of trusts. These issues include:
  • whether franking credits can form part of distributable income
  • whether other notional amounts can form part of distributable income
  • whether “streaming” works for tax purposes
  • the relevance of financial accounts in determining trust income.
The Decision Impact Statement also explains what ATO rulings and practice statements will be withdrawn or altered as a result of their now public views.
    This event discussed the impact on the drafting of distribution minutes for the current financial year and into the future.

Individual sessions

Bamford

Author(s):  Lance CUNNINGHAM This presentation covers:

  • the high court decision
  • income of the trust
  • characterisation of income & gains
  • proportional view
  • streaming
  • franked dividend streaming
  • compliance action
  • capital gain streaming.
Materials from this session: