Tax Facts

Tax Facts contains news and alerts relating to tax practice, for the benefit of accountants and other professionals in public practice. Please click on the links below for recent issues. You may also like to peruse Tax Facts by topic category - topics are listed below to the right.

Please note that the information provided in Tax Facts is of a general nature only and should not be acted upon without specific advice based on the precise facts and circumstances of a particular taxpayer.

If you do not already receive Tax Facts direct from us but would like to, please subscribe by entering your details to the right of this message.

Subscribe to Tax Facts

Subscribe to: Tax Facts Mailing List

    Practice Statement on testamentary trusts continuing


    In an apparent reaffirmation of the Commissioner's policy, minor changes have been made to Practice Statement PS LA 2003/12. The references to the former Government's proposal to enact the policy in legislation have been removed, given that the current Government has decided not to proceed with that proposal.

    Continuation of the Commissioner's policy is very important, since it enables the assets of a deceased to pass through the deceased's estate, then to the trustees of a testamentary trust created under the deceased's will and finally to a beneficiary of that trust (perhaps many years later), without any taxing point. It is arguable that, without the Commissioner's concessionary policy, that outcome might not be achieved. That is arguable because the CGT concessions in Division 128 apply where a deceased's assets passed to a beneficiary through the executor or administrator of the estate. Under the general law, the role of executor or administrator (arrange funeral, collect assets, pay the deceased's debts, etc) is quite distinct from the trusteeship of a testamentary trust that then arises under a person's will, even though the same people often occupy both roles.


    16 Apr 2014

    Topic: Income Tax/Trusts

    Read More Tax Facts