Deemed to be a “fixed trust” – draft guidelines

A Matter of Trusts

Taxation in Australia

During a panel discussion at The Tax Institute‘s National Convention in March 2016, Second Commissioner Andrew Mills mentioned that the ATO was considering publishing guidance regarding the manner in which the Commissioner would exercise his discretion to treat beneficiaries as having fixed entitlements in trusts for the purpose of s 272-5(3) of Sch 2F to the Income Tax Assessment Act 1936 (Cth) (ITAA36). Subsequently, on 26 October 2016, the ATO released PCG 2016/D16 (draft PCG) providing that guidance.1 Once the draft PCG is finalised, it will apply both before and after the date of issue.

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