Practitioners do not need to be reminded that trusts have unique tax features that seem to be attracting ever increasing scrutiny from the ATO. Therefore, when it comes to the tax flexibility that a trust may give to the small business CGT concessions, it is imperative that the use of the concessions be able to stand up to the possibility of scrutiny. This session explores the issues applicable to a trust’s use of the concessions, including:

• The maximum net asset value test and unpaid present entitlements

• Determining if a trust has a CGT concession stakeholder and calculating the direct and indirect small business participation interest

• How to apply the small business 15-year exemption and small business retirement exemption to trusts

• The impact on corporate beneficiaries receiving trust distributions that include small business 50% active asset reduction

• Using the small business CGT concessions as a restructure option from trust to company