The Assistant Treasurer has released extremely important Exposure Draft legislation on 13 April which will shape how tax practitioners advise their clients about Trust distributions for the 2010/2011 income year. These measures will seriously impact on family trusts and managed investments trust decision making in just over 2 months time. The new laws will allow flow through of franking credits and capital gains but in an unexpected fashion. At first the proposed methodology appears foreign to advisers used to the Division 6 approach but on a closer consideration Treasury may have it right. Will they work in all instances to ensure that targeted beneficiaries benefit? Aspects of the draft legislation may require further thought. This video explains the theory which supports the draft legislation and works through practical problems which will face practitioners.
Ken SCHURGOTTKen is a tax and commercial law partner in the Sydney office of SBN Lawyers. He has extensive experience in all aspects of tax (including State taxes) as well as business structuring, asset protection, succession planning and trust and estate law. Ken is a National Councillor of the Tax Institute and a member of the NSW Divisional Council and Education Committee. He is also a member of the Advisory Panel to the Board of Taxation and has recently been involved as a member of the Working Group on Managed Investment Trusts.
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Andrew Mills FTIA (Life) is Managing Director of tax specialist firm Greenwoods & Freehills Pty Limited where he
advises clients on a range of domestic and international tax issues, primarily in the financial services sector. His
career spans over 25 years and includes periods in the Australian Taxation Office, as well as corporate and
professional services organisations. Andrew was President of the Taxation Institute of Australia for 2006/2007 and
is also a part time lecturer in the Masters of Law course at the University of Sydney in taxation. He is the
Taxation Institute’s representative on Treasury’s Tax Treaties Advisory Panel and has spoken and written on
international tax issues in a number of forums.
Current at April 2009
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