TRUST ESTATE INCOME

GREENHATCH DECISION IMPACT STATEMENT

For taxpayers who have a trust, it may be useful to note that the ATO has issued a Decision Impact Statement in relation to the Full Federal Court decision in FCT v Greenhatch [2012] FCAFC 84.

In this case, the Full Federal Court considered how to apportion the income and capital of a trust estate to the beneficiaries of the trust.

Following the decision, the ATO has put out its views on how it believes the decision will impact on how trustees should work out a beneficiary’s share of the income of the trust estate.

TAXPAYER ALERT 2013/1

The ATO has also issued a Taxpayer Alert TA 2013/1 concerning arrangements that exploit mismatches between the income of the trust according to trust law and the taxable income of the trust. The purpose of a taxpayer alert issued by the ATO is to alert taxpayers to an emerging risk the ATO has identified and is focusing on.

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