The Australian Trusts Tax Handbook 2013-14 has been launched online to incorporate the most recent developments in this complex and yet common topic.
This edition displays a series of practical and friendly features such as examples, tips, warnings and alerts that assist accountants and tax practitioners to deal with the relevant legislation, rulings and cases (up to date as at 1 September 2013).
We can highlight the following new developments:
• Consultation on the proposed rewrite of the trust income tax provisions (announced in 2010) continues. In 2012, the Government released a policy options paper, Taxing Trust Income – Options for Reform and a discussion paper on fixed trusts. The start dates for the trust income tax rewrite and the new managed investment trust regime were moved from 1 July 2013 to 1 July 2014.
• The benefit of the 50% CGT discount has been removed in relation to beneficiaries who are foreign resident individuals and temporary resident individuals.
• The Commissioner’s administrative concession to allow trustees to make resolutions by 31 August has been withdrawn. To make a beneficiary presently entitled to trust income, the resolution must be made by 30 June.
• The Commissioner has released a controversial draft ruling (TR 2012/D1) on the meaning of “income of the trust estate” but has indicated that the ruling will not be finalised while the Government is reviewing the trust income tax provisions.
• The Tax Office has changed its position on trust resettlements (see TD 2012/21) and has withdrawn its contentious Statement of Principles.