S100A and Trusts – what is the ATO concerned
with?
The Australian Taxation Office (ATO) has for many years
expressed their disdain for discretionary trusts often labelling
them as tax minimisation vehicles. Despite this, trusts still
remain a popular structure for family businesses and groups,
because of its inherent asset protection, flexibility and ability
to pass assets to future generations with limited tax consequences.
Of late, it's this flexibility that has been the target of ATO
and they now have issued the following in relation to section
100A:
- A taxation ruling which explains their views on how s100A
works.
- A taxpayer alert which explains the high risk areas which would
trigger s100A in their eyes.
