I often encounter clients who want to amend returns but are outside the normal two year period. Frustrating....
There is a way. Unfortunately many clients aren't aware of it or are given poor advice by others. Many tax advisers will give the usual 2 years period from the time of the notice of assessment without looking a recent developments from appeal outcomes (Yazbeck decision). Even most tax guides used by practitioners overlooks this.
Q : Is the taxpayer a potential trust beneficiary ?
Can you think of ANY RELATIVE who may have a trust. It can be a remote relative in many cases since most discretionary trusts will have a beneficiary objects clause which refers to ""any relative of...". The important issue isn't whether you received an income distribution. The important issue is that the taxpayer is a potential beneficiary. And the beneficiary doesn't need to be aware of their potential. However to amend they would need to have means to support their application for the 4 years. So its a fishing opportunity !!
This issue often occurs when I find clients who didn't use a QS report. If we can backdate 4 years its far better than just two.
It is also possible that a mere deceased estate entitlement may also give access to the 4 year window. So an non-assessable issue may open the 4 year window too. Its a issue that hasn't been given a ruling as far as I can ascertain but worthy of request if such a event occurs.
Can I form a trust to be eligible to amend ??
That a complex issue and often the answer is no. I didn't say always. I say no as a trust deed alone isn't sufficient to determine a trust. There needs to be a valid deed, trust property and beneficiaries...So a deed alone fails. Also a trust created after the financial year where the amendment is required fails. A taxpayer cant be a beneficiary of a trust which wasn't in existence..Hence not a potential beneficiary.
There is a way. Unfortunately many clients aren't aware of it or are given poor advice by others. Many tax advisers will give the usual 2 years period from the time of the notice of assessment without looking a recent developments from appeal outcomes (Yazbeck decision). Even most tax guides used by practitioners overlooks this.
Q : Is the taxpayer a potential trust beneficiary ?
Can you think of ANY RELATIVE who may have a trust. It can be a remote relative in many cases since most discretionary trusts will have a beneficiary objects clause which refers to ""any relative of...". The important issue isn't whether you received an income distribution. The important issue is that the taxpayer is a potential beneficiary. And the beneficiary doesn't need to be aware of their potential. However to amend they would need to have means to support their application for the 4 years. So its a fishing opportunity !!
This issue often occurs when I find clients who didn't use a QS report. If we can backdate 4 years its far better than just two.
It is also possible that a mere deceased estate entitlement may also give access to the 4 year window. So an non-assessable issue may open the 4 year window too. Its a issue that hasn't been given a ruling as far as I can ascertain but worthy of request if such a event occurs.
Can I form a trust to be eligible to amend ??
That a complex issue and often the answer is no. I didn't say always. I say no as a trust deed alone isn't sufficient to determine a trust. There needs to be a valid deed, trust property and beneficiaries...So a deed alone fails. Also a trust created after the financial year where the amendment is required fails. A taxpayer cant be a beneficiary of a trust which wasn't in existence..Hence not a potential beneficiary.
