Proposed change to testamentary trusts in relation to minors regarding assets transferred to a trust on or after 1 July 2019, with an aim to stop people using these trusts to obtain a lower tax rate than would otherwise apply.
The ATO is questioning the reason of “natural love and affection” when forgiving a commercial debt, and whether that exemption should only apply to creditors that are natural persons.
Non-arm’s length income changes will see some expenditure also included in NALI that wasn’t before.
The ATO amends its view on how the income of professional firms can be allocated, although its suspended guidelines may still apply in certain cases.
Applying from 1 January 2020, this is part of an attack on the black economy. Cash can be foreign currency and also digital. It is expected that individual-to-individual transaction may be exempt.
Should this pass Parliament this time, the amnesty will apply to quarters prior to 1 April 2018. It will also end six months after the amnesty becomes law.
An employer held store revenue in trust for its professional staff and then distributed this on a regular basis. Were these payments, under the contractor provisions, subject to the conditions under the payroll tax regime?
An AAT case about personal services income is instructive regarding distributions from a trust. The decision found in favour of the ATO, which deemed it to be ordinary income.