Australia

Australian tax law bites trust law on franking credits

The High Court of Australia has restored sanity in a long running saga in which a trustee purported to separate franking credits from the underlying dividends in allocations to beneficiaries. The Court held (as the parties now accepted) that this … Continue reading

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Filed under Australia, Tax

Australian Board of Taxation reviews residency test for individuals

On 9 July 2018, the Board of Taxation (the “Board“) released its self-initiated report ‘Review of the Income Tax Residency Rules for Individuals’ (the “Report“). To read more, please see below.

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The Australian Tax Office broadens its targeting of private groups

Having focused on the top 320 privately owned and wealthy groups (“Private Groups“) earlier this year, the Australian Tax Office (“ATO“) Tax Avoidance Taskforce team is about to take its next step and review the next 1,200 largest Private Groups. We … Continue reading

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Filed under Australia, Tax

Private Groups and Trusts under ATO scrutiny

The ATO in Australia continues to target privately owned and wealthy groups, with specific focus on groups with risky trust structures that exhibit characteristics of tax avoidance or evasion.

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Filed under Australia, Private wealth and trusts, Tax

Corporate tax rate cut – passive income exclusion

As part of the Australian Government’s Enterprise Tax Plan, the corporate tax rate has been reduced to 27.5 per cent for entities that satisfy the annual turnover threshold requirement, which applies progressively from $10 million in the 2016-17 income year … Continue reading

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Filed under Australia, Private wealth and trusts

Labor’s Family Trust Distribution Tax

In an audacious move to target income splitting, if elected, the Australian Labor Party (ALP) has announced that it will introduce a minimum standard 30 per cent tax rate on all discretionary trust distributions made to beneficiaries over the age … Continue reading

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Filed under Australia, Tax

A severe case of the penalties

The Administrative Appeals Tribunal (AAT) has handed down its decision in Peter Sleiman Investments Pty Limited as Trustee for The Sleiman Family Trust and Commissioner of Taxation (Taxation) [2017] AATA 999 (Sleiman). The decision is a timely reminder of the … Continue reading

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Filed under Australia, Private wealth and trusts, Tax

Ilott v The Blue Cross and others – testamentary freedom and financial provision for family members around the common law world

On 25 April 2017 Richard Norridge, Joanna Caen and Gareth Keillor delivered a webinar on the state of the law relating to testamentary freedom and financial provision for family members following the landmark English Supreme Court decision in Ilott v … Continue reading

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Filed under Australia, Estates disputes, Hong Kong and Singapore, London, Private wealth and trusts

Trust law bites back against the Australian Tax Office

The recent decision of the Full Federal Court of Australia in Thomas v Commissioner of Taxation1 is a timely reminder of two points: tax results are often dictated by the rules of the non-tax world, and even unattractive cases sometimes win. … Continue reading

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Filed under Australia, Tax

Australian Tax Office takes action on assurance for Private Groups

The Australian Tax Office’s ("ATO") focus on large privately owned and wealthy groups ("Private Groups") is in full swing with no sign of slowing down in the 2017 year. With the top 320 large Private Groups holding A$112 billion of net … Continue reading

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Filed under Australia, Tax, Uncategorized