A Matter of Trusts

Taxation in Australia Journal

While consistent with recent ATO views, TD 2019/D6 and TD 2019/D7 provide minimal clarification on the taxation of Australian discretionary trusts distributing capital gains to foreign beneficiaries.

The ATO recently released TD 2019/D6 and TD 2019/D7 (together, “the determinations”) that concern Australian discretionary trusts distributing capital gains to foreign beneficiaries.

The determinations in turn follow the ATO’s 2016 discussion paper1 and effectively “complete the circle” after TD 2017/23 and TD 2017/24 (which dealt with foreign trusts distributing capital gains to Australian beneficiaries) were finalised by the ATO on 13 December 2017.

As with TD 2017/23 and TD 2017/24, the determinations will cause significant and continuing angst for taxpayers and their advisers who are considering and seeking to understand the interaction of Australia’s trust taxation rules and the cross-border distribution of capital gains, and this highlights the need for real reform in this area.

The full presentation is available to Sladen Smart Members sign up/login here to continue reading.