CGT issues when creating and dealing with UPEs

CGT issues when creating and dealing with UPEs

Until recently, unpaid present entitlements (UPEs) have been a rarely considered aspect of trusts, especially in relation to tax considerations post their creation. However, in the last few years, the position of the Australian Taxation Office (ATO) on the application of Div 7A of the Income Tax Assessment Act 1936 (Cth) (ITAA36) to UPEs to corporate beneficiaries1 has brought UPEs into focus. In more recent times, the ATO has released draft determinations, a determination and a ruling on the interaction of UPEs with a number of tax provisions, including the bad debt rules and the small business tax concessions.2

CGT Hotspots in Restructuring Trusts in Estate Planning

CGT Hotspots in Restructuring Trusts in Estate Planning

There are significant tax issues, especially in relation to possible capital gains tax (CGT) liabilities, which should be considered whenever a client intends to restructure a trust.  This is particularly the case in the restructuring of entities, particularly trusts, in a family group

Seamlessly Integrating Superannuation into Effective Estate Planning

Seamlessly Integrating Superannuation into Effective Estate Planning

This paper examines how to incorporate super into the succession process. In particular, the use of BDBNs and reversionary pensions and the interaction between the two and the succession of the super fund trustee is examined.

The ATO’s proposed treatment of unpaid present entitlements: part 1

The ATO’s proposed treatment of unpaid  present entitlements: part 1

This is the first of a two-part series discussing the proposed treatment of unpaid present entitlements (UPEs) by the Australian Taxation Office (ATO). On 10 June 2015, the ATO released TD 2015/D5 and TD 2015/D4 discussing, respectively, the treatment of UPEs for the purposes of:

Transferring Real Estate In and Out of SMSFs

Transferring Real Estate In and Out of SMSFs

Real property is a popular investment for SMSFs (self managed superannuation funds). However, there are a number of unique issues that come with SMSFs receiving, holding and disposing of real estate. In this paper I have examined a number of those issues in great detail.