Trusts and two-tiered company tax rates

Neil Brydges of Sladen legal discusses two-tiered company tax rates create compliance and practical issues for trusts that distribute to bucket companies — not just for companies.

The lowering of the company tax rate to 27.5% for certain companies has implications not just for eligible companies, but also for trustees and beneficiaries of trusts.

This article considers:

  • eligibility for the lower company tax rate;
  • how imputation works with two-tiered company tax rates (together with examples); and
  • the practical implications for trusts as they approach 30 June 2018, including a question about  whether the rules work in the context of trusts distributing to companies.

Read the published article. Trusts and two-tiered company tax rates

To discuss this article, or for any further information please contact:

Neil Brydges
Special Counsel | Accredited specialist in Tax Law
Sladen Legal
M +61 407 821 157 | T +61 3 9611 0176
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia