Revenue NSW has determined that foreign surcharges breach international tax treaties. Will other revenue offices follow suit? How do you ensure that your trust is not a foreign trust?

In this article, we explore Revenue NSW’s announcement that New South Wales surcharge purchaser duty and surcharge land tax, including trust surcharges, are inconsistent with international tax treaties entered into by the Australian federal government with certain foreign countries. In addition, this article examines the position of the Victorian State Revenue Office (SRO), and what trustees of discretionary trusts can do in each state and territory to ensure that they don’t fall foul of the respective foreign surcharge provisions.

This paper provides the technical background to the practical aspects discussed in the session.

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