Published on 01 Aug 09
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The Full Federal Court recently handed down its judgment in Bamford v Commissioner of Taxation  FCAFC 66, a case dealing with certain aspects of the taxation of trusts under s 97, Income Tax Assessment Act 1936 (ITAA36). The Bamford case considered two important issues regarding trust taxation; namely, the method by which a beneficiary’s share of the trust’s taxable income is determined and whether a trust deed can modify the “income of the trust estate” to which a beneficiary is presently entitled for tax purposes. This article examines the reasoning in the Bamford case and its effect in clarifying these aspects of the taxation of trust income.
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