Published on 28 Aug 09
by NATIONAL DIVISION, THE TAX INSTITUTE
During their lifetime trusts are exceptionally flexible structures with distinct tax and wealth protection advantages. As they reach the end of their useful life, extracting the value they harbour can be tricky. This paper considers some of the practical difficulties likely to be encountered along the way and on vesting.
Covered are effective distributions:
- unit trusts: What constitutes a non-assessable distribution? Timing advantages under an E4;
- planning ahead to fully utilise the small business CGT concessions;
- do hybrid trusts present particular winding up problems?;
- the trustee calls it "income" but the ATO calls it "capital". Does name-calling make a difference?;
- capital distributions and the legitimacy of following the Practice Statement LA 2005/1; and
- the impact of the Board of Taxation's Review of MITs.
Ken Schurgott, CTA-Life is a Solicitor - Director of Schurgott & Co Lawyers specialising in taxation matters (including State Taxes, stamp duty, payroll tax and land tax) and with extensive experience in business structuring, business sales and acquisitions, asset protection, succession planning and trust and estate law. Ken is very experienced in tax dispute matters, negotiations for settlements, mediations and conciliations and litigation. He regularly appears before the AAT and NCAT and instructs counsel in matters before the Courts. Ken has been heavily involved in consultations with the ATO and Treasury on matters involving trusts including the inter-relation with Division 7A. He was National President of The Tax Institute in 2012.
- Current at
17 October 2017