403 | Div 6E Income
Div 6E income is relevant when your trust income includes capital gains and/or franked distributions. Then Div 6E will avoid double taxation.
Div 6E income is relevant when your trust income includes capital gains and/or franked distributions. Then Div 6E will avoid double taxation.
Trust Loss Allocation - Upton v Brown sets the scene. And then Cajkusic and Raftland confirm Upton v. Brown but very much limit its application.
Let's go to the very start and look at trust income. Because we need to understand trust income before we can talk about trust losses.
The theory around foreign trusts is confusing. So in this episode let's use a New Zealand trust as a foreign trust example.
Foreign trusts are not an issue per se. Nor are resident trusts. It really depends. But if you do have a foreign trust, watch out for s99B ITAA 1936. That is a really dangerous one.
An asset protection trust (aka equity split) does not give you 100% protection but it helps. Each layer you use increases your protection from creditors.
Asset protection layers can get pierced through. None is watertight. But the more layers you have, the more protected you are.
Asset protection silos are to ringfence the assets of one business from the creditors of another.
Here are five transfer pricing examples that cover common transfer pricing issues.
A reasonably arguable position - a so-called 'RAP' - is essential to protect you from penalties and interest around transfer pricing.
Which state law applies when you have people in different states? Do the DINs change anything? How do you check that a client matches the ID provided? All electronic signature questions you ever wanted to know you find in this episode.
The legislative framework of electronic signatures is confusing - to say the least.
Child support lump sum payments are often favoured by mothers and might improve the relationship between parents.
Child support non-agency payments are payments to third parties credited to a child support liability.
The two s100A B Blood and Guardian cases cover some very specific scenarios. And not common examples.
Updated s100A TR and PCG - get the updated review of ATO's approach to s100 issues. Avoid reimbursement arrangements.
TR 98/4 situations 4 and 5 are about non-arm's length income and arrangements.
TR 98/4 is about child maintenance trust arrangements. It lists five scenarios where the CMT does not qualify for excepted income.
Child maintenance trust income - this is the second part of our interview about the excepted income in child maintenance trusts.
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