Preliminary ATO views on trust vesting

A Matter of Trusts

Taxation in Australia Journal

Neil Brydges special counsel at Sladen Legal discusses ATO’s preliminary views on trust vesting.

The Commissioner issued TR 2017/D10 on 13 December 2017 with his “preliminary views” on amending a trust’s vesting date and the income tax consequences of a trust vesting.

The views in TR 2017/D10 are not materially different from those expressed by the ATO at public forumsin late 2017. However, the benefit of having those views in a taxation ruling is that a taxpayer is not liable for penalties and interest on any tax shortfall that results from relying on those views (or if the Commissioner later changes his view). TR 2017/D10 also provides further detail (including several examples) on the Commissioner’s views. In addition to TR 2007/D10, the Commissioner released an opinion by Dominic O’Sullivan, QC, and Michael O’Meara of counsel that assisted the Commissioner in formulating his views in TR 2007/D10.

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