2020 Private Business Online Series

The Tax Institute

It has become common practice to make family trust and interposed entity elections to deal with carry forward losses and franked distributions without considering the impact on the future of the group.

This paper addresses the operation of the family trust regime providing an overview of what family trust elections are; how they are made; and importantly, the implications and consequences of making an election. Through that analysis, it will be evident how an incorrect decision or nomination of test individual could affect the options of the group in the future. The paper also addresses the role of family trust elections in an evolving and developing business, different entity structures and the implications of the choice of test individual in respect of growth of a privately controlled business.

This paper is intended to be practical whilst still addressing technical issues. Not all of the detail in these materials will be covered during the presentation.

This paper focuses on discretionary trusts. These trust vehicles are often encountered by practitioners.

In these materials ITAA 36 is a reference to the Income Tax Assessment Act 1936 (Cth) and ITAA 97 is a reference to the Income Tax Assessment Act 1997 (Cth).

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