Posted on 21/3/2022
Tax Advisory
Many family groups utilise trusts, specifically discretionary trusts, to conduct income producing activities, whether that be in the form of passive investment or carrying on a business. Trusts also offer asset protection and succession advantages and are therefore widely adopted.
The ATO has released four documents, three of which are in draft form. Primarily, they concern the splitting of income by trusts amongst family members and controlled entities where that income is enjoyed by another individual or entity.
For those who appreciate the technical detail, those documents are as follows:
Through these documents, the ATO is outlining:
Importantly, the Taxpayer Alert is a final document, as the ATO does not intend to consult with the taxation industry on behaviour it considers to be at the extreme end of the tax minimisation spectrum.
At this stage, there is no action required by you.
Your Perks Adviser will continue to monitor developments in this area in the lead-up to 30 June and contact you if any action is required.
However, if you have any queries in the meantime, please do not hesitate to contact either your Perks Adviser or a member of our Tax Advisory Team below.
Brian specialises in providing high level taxation advice. Tax consulting across corporate tax, capital gains tax and international tax, to ATO product and class rulings for managed investment schemes.
Providing tax consulting advice to small, medium and large enterprises, with specific focus in the aged-care and property industries.
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