When involved in a dispute with the Australian Taxation Office (ATO), it is always in a clients’ best interest to seek to either resolve or narrow and define the relevant issues in dispute as quickly and efficiently as possible. We will always advise a client to seek to engage with the ATO to resolve a tax dispute, when possible.
Discretionary trusts are prevalent in the small to medium enterprise (SME) market due to their income tax effectiveness, distribution flexibility, and asset protection features. However, this may be about to change. The Australian Labor Party (ALP) has proposed a number of amendments to existing tax laws should they win the election on 18 May 2019.
In Watson as trustee for the Murrindindi Bushfire Class Active Settlement Fund v Commissioner of Taxation  FCA 228 (Watson), the Federal Court ruled that an investment trust established to hold funds received as compensation for victims of the black Saturday bush fires could not deduct administrative expenses associated with the trust’s operation.
We previously reported here and here on the Full Federal Court decision of Pintarich v Deputy Commissioner of Taxation  FCAFC 79 (Pintarich) and the unsuccessful application for special leave to the High Court.
In Parts 1-4 of this series, we discussed the landholder duty provisions, with a particular focus on Victorian landholder duty. In this part we continue to delve into the complex landholder provisions, with a focus on the principle of an acquisitions of economic entitlement.