This article is more than 24 months old and is now archived. This article has not been updated to reflect any changes to the law.
The confusion about whether distributions of trust property to beneficiaries were 'duty exempt' under the previous section 36 of the Duties Act 2000 in Victoria) was clarified in early 2007.
Now, if the beneficiary satisfies the Commissioner that the transfer of property is not part of a sale or received for consideration, then taking a transfer subject to a mortgage does not constitute a transfer for consideration.
For further detail regarding the impact of the new laws on fixed trusts, discretionary trusts and unit trusts and similar exemptions in other jurisdictions, see our full article here.
On 30 April 2007, the ATO's amnesty on Phillips arrangements expired. This marked a shift by the ATO from an education?based approach to a compliance-based approach for service entities charging fees in excess of commercial rates to related parties.
To take advantage of tax deductible service fees and charges and avoid being audited, practitioners are reminded to: :
The queries posed by the review continue to be relevant to new Phillips arrangements — as does the ATO's Guide on the topic. Both of these are examined in further detail in our full article here.
Qualifications: BA (Philosophy), Monash University, JD (Juris Doctor), University of Melbourne
Jack is a member of Maddocks Commercial team. He advises a range of corporate and private clients on:
Jack acts for clients on both buy-side and sell-side and specialises in founder-owned businesses and Australian subsidiaries of multi-national companies. He works across a number of sectors including information technology, professional services, and property development and management including land lease.
Jack’s structuring work includes assisting multinationals to structure Australian operations, listed companies to achieve regulatory compliance / optimisation and providing general tax structuring. He has also represented clients in tax controversies including before the General Anti-Avoidance Review Panel (GAAR Panel) and the Federal Court of Australia.
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