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 is a Tax and Commercial Law Director of Schurgott & Co Lawyers and Special Counsel with Brown Wright Stein Lawyers, Sydney. He has extensive experience in all aspects of tax (including state taxes and litigation), as well as business structuring, business sales and acquisitions, asset protection, succession planning and trust and estate law. Ken has been, until recently, a member of the Advisory Panel to the Board of Taxation and heavily engaged in ongoing consultation in relation to the reform of the taxation of trusts and trust issues generally.
- Current at
22 May 2017