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Practical guide to using trust losses paper
Published on 05 May 06 by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
The tests for making use of trust losses have proved to be very effective in restricting or moderating their use and so great care is needed by the tax adviser to ensure that where trust losses could be properly used, all the conditions are met. This paper uses case studies to highlight the problem areas in satisfying the tests and to suggest tactics to deal with the problems. The paper also contains an overview of the trust loss provisions for reference. The case studies deal with problem areas in the following areas:
- correctly identifying a fixed trust
- rixed interests and the Commissioner’s discretion
- family trust and interposed entity elections
- the tests (50% stake, control, pattern of distribution and income injection).
Author profile
Arlene Macdonald CTA-Life
Until her recent retirement, Arlene was a Barrister at the South Australian Bar for 17 years. Prior to this she spent 8 years at the Australian Government Solicitor's Office, and several years at the ATO and the Commonwealth Ombudsman's office. At the Bar she appeared and advised in a wide range of Commonwealth and State tax disputes concerning income tax, CGT, GST, stamp duty, payroll tax, land tax and other tax issues. Arlene is experienced in acting for the Commissioner of Taxation and for the range of taxpayers who were in dispute with the revenue authorities or who needed advice on how tax law applies in their case. She has a passion for legal education, especially in tax and trust law. She was awarded life membership of The Tax Institute in 2010 particularly for her work over many years in organising, promoting and providing education through The Tax Institute. She has written a vast number of papers and articles and is a highly sought after speaker.
- Current at
16 February 2015
This was presented at 40th South Australian State Convention: Let's Celebrate .
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