To ensure our clients are effectively represented when it comes to legislative and administrative change we proactively monitor and respond to government media releases. Listed below are our current submissions for you to review.
ABOLISHING THE TRUST CLONING EXCEPTION
TREASURY DISCUSSION PAPER
ASSISTANT TREASURER'S PRESS RELEASE 31 OCTOBER 2008 NUMBER 092/08
As you are aware, the Assistant Treasurer, Mr Bowen, announced on 31 October 2008 an intention to remove, as from 1 November 2008, the exceptions contained in Sections 104 55(5)(b) and 104 60(5)(b) of the Income Tax Assessment Act 1997. These relate to the ability, up to that time, to "move" assets between identical trusts, without activating a liability for CGT.
The "movement" of assets between like trusts was essentially used for:
- Separating "safe assets" from "risk assets"
- "Moving" trust owned assets into "next generation trusts" as part of succession and estate planning.
We have made submissions to the ATO and to other appropriate parties dated 10 December 2008, a copy can be accessed by clicking HERE.
There is some hope that the submissions by us and others may lead to less than a full repeal of the exceptions.
DRAFT SELF MANAGED SUPERANNUATION FUNDS RULING SMSFR2008/D5
This draft ruling is concerned with the meaning of certain terms within the definition of in-house asset. One of the terms dealt with is "investment in".
In our letter to the ATO we provide our comments in relation to the ruling and our explanation concerning the term "investment in" which appears in the draft ruling. To view our letter dated 18 December 2008 please click HERE.
DRAFT TAXATION DETERMINATION TD2008/D16
This draft Determination is concerned with the deductibility of interest on loans for investments in what the Commissioner refers to as "uncommerical trust arrangements".
Our letter to the ATO sets out our submission that deductibility ought to depend on the nature of the rights of the investor in the Unit Trust. To view out letter dated 19 December please click HERE.