Published on 25 Sep 08
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
Note: This paper was also presented at the Darwin Seminar on 28 November 2008.
This paper covers issues such as:
the concepts of "net income", "income of the trust estate" and "distributable net income"
the meaning of Gleeson CJ's obiter in the ANZ Savings Bank case and whether the Cajkusic interpretation is correct
the various kinds of income clauses in trust deeds - (a) accounting income, (b) section 95 income and (c) income as determined by the trustee - and the effect of those formulations on tax liability
detailed examples of trust distributions involving capital gains, franked dividends, exempt income, rental income, disallowed deductions, and other mismatches between trust income and section 95 income.
Michael Butler FTIA is a Partner at Finlaysons' Tax & Revenue Group. Michael advises both domestic
and foreign clients on federal, international and state tax matters, and has a special interest in property tax
issues. Michael is the author of the book "Australian Federal Company Taxation" and a regular contributor to Taxation
Institute of Australia events. Current at 23 March 2009Current at 15 April 2009
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
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