Australian Taxation Office targets investors seeking to adopt capital gains tax treatment on sale of shares

The recent Australian Administrative Appeals Tribunal (“AAT“) decision in Ransley v Commissioner of Taxation [2018] AATA 4359 has shown the willingness of the Australian Taxation Office (“ATO“) to target investors seeking to adopt capital gains tax treatment on the sale of shares. The AAT also upheld the 50% penalty applied by the ATO. Please click here to read a … Read more

Australian Treasury’s proposed extended significant global entity definition may include trusts

On 20 July 2018, the Australian Treasury released Exposure Draft legislation to extend the definition of a significant global entity (SGE). As a result, the extended definition of an SGE may include members of large private groups headed by unlisted companies, trusts (including discretionary trusts), partnerships or other investment vehicles. This will have wide ranging … Read more

TAXING PRIVATE TRUSTS IN AUSTRALIA – A MOVING TARGET

The Australian revenue authorities have been very active recently issuing judgments, making pronouncements and intensifying enforcement activity, all directed to the way the tax system operates in relation to income made from, and gains arising on transactions with, assets that are held on trust. Please click here for some highlights of the effects of some of the … Read more

Circular trust resolutions – family trusts to be taxed at 47% by Australian Government

Following on from the Australian Government’s announcement in the 2018-19 Budget, an Exposure Draft entitled Treasury Laws Amendment (Measures for a Later Sitting) Bill 2018 has been released which proposes to impose trustee beneficiary non-disclosure tax (currently, 47%) on the untaxed part of a circular trust distribution to which the trustee of a family trust … Read more

Dawn raids – how to prepare for the unexpected

The continuing focus and scrutiny of regulators and law enforcement agencies on countering anti-money laundering and counter-terrorist financing activities are a reality worldwide. Banks, trustees, companies and other businesses dealing with private clients often possess and handle highly sensitive information which may be the subject of a dawn raid investigation. In particular, Trust and Company … Read more

FATCA: First-ever conviction signals increased enforcement risk

The former CEO of Saint Vincent-based Loyal Bank pleaded guilty and was convicted on 11 September of conspiring to defraud the United States by failing to comply with the Foreign Account Tax Compliance Act (“FATCA“). This is the first conviction obtained by the US Department of Justice (DOJ) since FATCA came into effect in 2014 … Read more