12 June 2012
In this week’s Tax highlights we feature:
- Court cases on trusts: Two court decisions have been handed down over the past week concerning the tax treatment of trusts:
- Greenhatch: The Full Federal Court has held that, for the purposes of the former capital gains tax (CGT) discount rules, only a proportion of the amount to which the beneficiary was presently entitled was attributable to a capital gain made by the trust
- Hopkins: The AAT has held that the taxpayer beneficiaries were not presently entitled to the income of a trust estate because there was no evidence that a valid resolution regarding the distribution of trust income had been made by the trustee by the end of the relevant income years.
- ATO Rulings: Several final tax determinations have been released. To note is a tax determination explaining when income tax of a private company is a ‘present legal obligation’ for the purposes of the deemed dividend rules.
Plus we provide our synopsis of the latest tax-related cases, legislative developments, announcements and ATO information and releases.