shopping_cart

Your shopping cart is empty

TD 2018/D3: ATO swings for trust splitting; hits much further

Member Price: $22.00
Non Member Price: $28.00

DisclaimerThis material is copyright. Apart from any fair dealing for the purposes of private study, research, criticism or review, as permitted under the Copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

Published on 01 Sep 18 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

The arrival of TD 2018/D3 on trust splitting disrupts the pleasant calm around trust variations since TD 2012/21, when the ATO seemed to throw its hands in the air post-Clark and say that almost anything done in accordance with powers under a trust deed is not a resettlement. The draft ruling introduces a different approach to trusts, the “new trust view”, which has historically been a minority view supported by such thinkers as Dr Campbell Rankine and Mark Robertson, QC.

By adopting the “new trust view” in regard to trust splitting, the ATO will (correctly) put CGT event E1 as a live issue on each change in trustee of a trust. What constitutes a resettlement will need to fi nally move away from the “substratum of the trust” tests in line with more recent authority.

 

Author profile

Adrian Cartland
Photo of author, Adrian CARTLAND Adrian “the Taxinator” Cartland has practiced for nearly 20 years, working at a number of tax law roles in top tier firms as well as boutique tax practices, meeting his billable targets on at least a few occasions. About ten years ago he began thinking about the future of law and developed an interest in legal Artificial Intelligence, mostly in an effort to find a robot to do the work he was too lazy to do. Deciding that it was best to pursue this expensive and time consuming hobby (er, business) while not on someone else’s timesheet he founded his own firm Cartland Law, and is now unemployable. Because Adrian knows very little about other, more normal, areas of law, Cartland Law specialises in and only accepts instruction in tax, trusts and technology. Coming from a family of engineers who have constructed many things beneficial to society, Adrian has instead created a number of tax and trust structures that are so complex no-one really knows what they do. He has also created Ailira, the Artificially Intelligent Legal Information Research Assistant and partly contributed to the doom of humanity by AI. He is the Chair of the Society of Trust and Estate Practitioners SA, the TTI’s State Taxes Committee, was Australia’s funniest lawyer in 2007 and holds the Australian record for fastest MMA knockout at 6 seconds. - Current at 07 January 2026
Click here to expand/collapse more articles by Adrian CARTLAND.

 

Copyright Statement