Trust changes proposed

[Michael Croft]

Hi all,

It's that time of the year when I forwarn my accountant of what awaits him This time however he told me that moves are afoot after the fiasco of certain barristers avoiding tax by declaring bankrupt, to introduce new rules/laws to parliament for approval.

I believe they are talking about removing the trust veil and 'following the money where ever it leads'. This has serious implications for all trusts set up for assett protection as the proposed legislation will make it easy for the courts to dismantle trusts by this 'following the money' proposal.

I don't have details (yet) has anyone else heard anything? Dale? As over 60% of parliamentarians operate trusts (many for assett protection) the eventual legislation may be watered down but ..........

regards, MC

 

[DaleGG]

HI

Last I heard, there were moves to identify what could be done in this area . . . nothing more. If any new laws were being passed, I'd love to know more, too.

As always, check the final wording before getting too concerned. My bet is that it is another paper tiger.

Dale

Originally posted by Michael Croft
Hi all,

It's that time of the year when I forwarn my accountant of what awaits him This time however he told me that moves are afoot after the fiasco of certain barristers avoiding tax by declaring bankrupt, to introduce new rules/laws to parliament for approval.

I believe they are talking about removing the trust veil and 'following the money where ever it leads'. This has serious implications for all trusts set up for assett protection as the proposed legislation will make it easy for the courts to dismantle trusts by this 'following the money' proposal.

I don't have details (yet) has anyone else heard anything? Dale? As over 60% of parliamentarians operate trusts (many for assett protection) the eventual legislation may be watered down but ..........

regards, MC

 

[NickM]

I have heard that the problem lies in the bankruptcy provisions.

EG a barrister doesnt lodge a tax return for 30 years (not uncommon)
Barrister has divested himself of assets
The ATO issues income tax assessments
Barrister declares himself bankrupt
3 years later he is back on track. in many cases the 3 years is reduced to 2 or less.

NickM

 

[Alex_1]

Just wondering - surely there must be some criminal penalties (e.g. prison time) for this sort of thing; e.g. not filing a return for 30 years.

People go to gaol for tax evasion, for fraudulently paying LESS tax than they should. How can someone who has knowingly paid NO tax for 30 years (probably on a very high income) avoid criminal as well as civil penalties?

Doesn't the ATO have some discretion to bring criminal charges for non-lodgement of tax returns? If it does, how is someone who hasn't filed a return in 30 years NOT sitting in a gaol cell? These barristers are obviously experts at the asset-shielding game and seem to use bankruptcy as a routine wealth-building strategy.

If barristers knew they they'd cop a stiff gaol term, they might not be so quick to opt out of the tax system.

 

[DaleGG]

Hi

The tax office do try to penalise the barristers, but, through a combination of inept systems that allows the lack of returns to go unnoticed and further ineptitude in pursuing the matters our clever barristers do get away with a lot more than they should.

Jail? What about a good flogging instead? At least that way, the bastards might dob themselves in!!!!!!!

Dale

Originally posted by Alex_1
Just wondering - surely there must be some criminal penalties (e.g. prison time) for this sort of thing; e.g. not filing a return for 30 years.

People go to gaol for tax evasion, for fraudulently paying LESS tax than they should. How can someone who has knowingly paid NO tax for 30 years (probably on a very high income) avoid criminal as well as civil penalties?

Doesn't the ATO have some discretion to bring criminal charges for non-lodgement of tax returns? If it does, how is someone who hasn't filed a return in 30 years NOT sitting in a gaol cell? These barristers are obviously experts at the asset-shielding game and seem to use bankruptcy as a routine wealth-building strategy.

If barristers knew they they'd cop a stiff gaol term, they might not be so quick to opt out of the tax system.

 

[D.T.]

Jail? What about a good flogging instead? At least that way, the bastards might dob themselves in!!!!!!!

You just want them as clients?
(kidding)

 

[DaleGG]

ssshhhhhhhhhh!!!!!