Rob - Glad you mentioned that issue. In my former role I looked at many of the bank / lawyers bare trusts and some had issues that triggered a CGT event due to the Abs Ent problem. So much for relying on the bare trust. ATO referred the work we had done in this area to Treasury who agreed that many failed to give an absolute entitlement. This creates a stamp duty and CGT worry. The practical issue is to ignore it but Treasury appreciate it isnt that simple. Yep they assumed....
A fix was announced to patch s67 and the abs' ent' leak concern. I believe the band aid didnt get through before the election.
s106-50 ITAA...Tax law addresses absolutely entitled beneficiaries. ATO recognise Bare Trusts, Blind Trusts and an absolutely entitled beneficiary trust (eg a child education trust / disability trust). But the banks only consider one form of absolute entitlement and one that doesnt always work ??? "Laughing all the way to the bank"
A fix was announced to patch s67 and the abs' ent' leak concern. I believe the band aid didnt get through before the election.
s106-50 ITAA...Tax law addresses absolutely entitled beneficiaries. ATO recognise Bare Trusts, Blind Trusts and an absolutely entitled beneficiary trust (eg a child education trust / disability trust). But the banks only consider one form of absolute entitlement and one that doesnt always work ??? "Laughing all the way to the bank"
