Section 102 AG of the Income Tax Assessment Act (1936) has just been amended. This amendment will have tax implications for existing Testamentary Trusts and people with testamentary trust wills where minor beneficiaries (such as children or grandchildren) expect to … Read More
As estate lawyers, we often have clients come in to make a Will and they have not heard of testamentary trusts. Or if they have heard of them, they assume they are overly complicated or just for those that have … Read More
For many Australians, superannuation is the largest component of their wealth when they die, particularly if insurance is held within the fund. Since superannuation was designed to provide for your retirement and your dependants after your death, it is often … Read More
By Sage Leslie As seen in the May edition of B2B Magazine Many factors go into working out how best to divide assets following the breakdown of a relationship. One factor that can be overlooked in negotiations is the taxation … Read More
On 30 July 2014, the ATO released Taxation Ruling TR 2014/5 – Income tax: matrimonial property proceedings and payments of money or transfers of property by a private company to a shareholder (or their associate). The ruling was previously issued … Read More
Limited Recourse Borrowing Arrangements (“LRBA”) – wins and losses from the ATO The ATO has recently provided Self Managed Superannuation Funds (“SMSF”) with a win and a loss in relation to LRBA arrangements. The win came in the form of … Read More
On 25 March 2014, the Board of Taxation released its second discussion paper on Division 7A of Part III of the Income Tax Assessment Act 1936 (“Division 7A”). Division 7A is an anti avoidance provision aimed at stopping tax-free distributions … Read More
In order to access the small business CGT concessions in Division 152 of the Income Tax Assessment Act 1997, the taxpayer and their connected entities and CGT affiliates must have, amongst other things, net assets less than $6,000,000 or a … Read More
The Australian Taxation Office (“ATO”) has just published a legislative instrument under Section 71(1)(f) of the Superannuation Industry (Supervision) Act aimed at overcoming the risk of a Limited Recourse Borrowing Arrangement (“LRBA”) breaching the in-house assets rules in the SIS … Read More
The Australian Taxation Office (“ATO”) recently published Draft Taxation Ruling TR2013/D6. The ruling is, basically, a rewrite of the ATO’s opinion on the applicability of Division 7A of Part III (“Division 7A”) of the Income Tax Assessment Act 1936 (“ITAA36”) … Read More
The Australian Tax Office recently issued a media release warning taxpayers about “dividend washing”. Dividend washing effectively allows a taxpayer to obtain two franked dividends on the same parcel of shares. It is particularly attractive in a superannuation environment where … Read More