Published on 28 Sep 05
by QUEENSLAND DIVISION, THE TAX INSTITUTE
This paper covers the following:
- what is trust income and what is trust capital?
- can capital become income by definition?
- making capital distributions under the trust deed
- satisfying entitlements to income by distributing by specie
- CGT consequences for the trustee and beneficiary
- accessing CGT rollover exemptions
- GST implications of in specie distributions
- implications of recent cases
- accounting for trust income which is defined as 'tax law net income'.
This paper was originally presented by Brian Richards at the 'A Matter of Trusts' seminar held in Brisbane on 28 October 2004. Minor changes have been incorporated to update the paper for presentation by Mark Molesworth at the 'Trusts Intensive' seminar held in Brisbane on 28 September 2005.
Brian of Richards Advisory has specialised in providing taxation advice to accounting and legal practitioners in respect of a wide range of business clients for approximately 40 years. His particular taxation specialty areas include business restructuring, intellectual property transactions, CGT issues and tax planning matters. As a taxation specialist, Brian has extensive academic and other lecturing experience.
- Current at
04 January 2018