ARTICLE · 03 APRIL 2012

ATO celebrates Bamford Anniversary with a draft ruling on Trust Income - TR 2012/D1

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The Draft Ruling discusses the meaning of the term "income of the trust estate" and also provides illustrative examples.

AustraliaTax

Simon Tucker

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Introduction

Today marks the two year anniversary since the five judges of the High Court of Australia handed down its much publicised decision in the Bamford case. The key element of this decision was the question of what is meant by the five words "income of the trust estate" in tax provisions that determine how trustees and beneficiaries are taxed.

One year and 364 days PB (i.e. "Post Bamford") the Australian Taxation Office ("ATO") have released their own interpretation as to what the Commissioner believes the High Court of Australia really meant, in the form of Draft Taxation Ruling TR 2012/D1 (the "Draft Ruling"). The Draft Ruling discusses the meaning of the term "income of the trust estate" and provides a number of illustrative examples.

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