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ARTICLE · 26 MAY 2009

ATO Targets Trusts In Tax Crackdown

Cooper Grace Ward
Cooper Grace Ward
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"ATO Targets Trusts In Tax Crackdown" was the headline for the main story in the Australian Financial Review on Monday 18 May 2009.

AustraliaTax
Greg Cahill
Greg Cahill
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This was the headline for the main story in the Australian Financial Review on Monday 18 May 2009.

The article was triggered as a result of the issue by the ATO of a draft Practice Statement (DPS) in relation to the determination and taxation of trust income.

The approach suggested in the draft Practice Statement is not as draconian as suggested in the Financial Review article, but it does reflect a significant change in approach by the ATO.

While the DPS is still a draft document, it presumably represents the current thinking of the ATO and advisors need to consider the views in the document when advising clients on trust distribution issues.

There are several significant changes foreshadowed in the DPS.

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