100A Income Tax Assessment Act: Distribution From Trusts

• CPD Points: 1 [PS] [SL]
• Price: $77.00
• Area: Administration of Estates; Elder and Succession Law; Estate Planning; Finance; Succession Planning; Tax Law; Trusts
• Delivered: August 2022

Digital Content

• Recording
• Materials: Paper and Slides (67 pages)

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Description

Mr Ron Jorgensen, Partner, Accredited Tax Law Specialist, Thomson Geer Lawyers, presents on distributions from trusts into the Society's Elder and Succession Law Conference 2022. Mr Jorgensen states that the ATO issued guidance on the application of s100A Reimbursement Agreements anti-avoidance rule to cancel a trust's unpaid present entitlement (UPE) to a beneficiary and tax the trustee at penalty tax rates. TR 2022/D1 and PCG 2022/D1 have been criticised for potentially applying to common trust distribution, asset protection and succession planning strategies considered by the profession to be ordinary family or commercial dealings. This presentation critically considers the ATO's view in respect of common transactions including: creating and retaining UPEs as working capital of the trust or estate; setting-off, transferring, gifting and releasing UPEs for asset protection and succession planning; and setting-off a child's UPE against a parent's expenditure maintaining that child.

Key takeaways from this presentation include: ATO acceptance of some common distribution, asset protection and succession strategies; possible adverse consequences for common distribution, asset protection and succession strategies; and tax analyses of common distribution, asset protection and succession strategies.