Post by Mark on Feb 23, 2015 0:04:37 GMT 4
Australian International Taxation of Attributed Trust Gains
Mark Brabazon
University of Sydney - Faculty of Law
February 1, 2015
Australian Tax Review, 2015 Forthcoming
Sydney Law School Research Paper No. 15/05
Abstract:
Does Australia’s international claim to tax trust-level capital gains apply the jurisdictional rules of trust taxation based on source, or those of capital gains taxation based on ‘taxable Australian property’, or a hybrid of the two? The article sets out to answer the question by historically and analytically tracing the development of those rules and their interaction with substantive taxing and attribution rules. It tests the jurisdictional claim across a range of single-trust and chain-of-trust scenarios for gains attributed to beneficiaries and gains attributed to the trust itself and concludes that, despite the complexity of the rule structure, the current settings resolve to a small number of basic propositions drawing on elements of both CGT and trust tax jurisdictional rules. It argues that the rules should be revised for clarity and should be rationalised to bring the international settings for trust gains into line with direct CGT settings.
Number of Pages in PDF File: 49
papers.ssrn.com/sol3/papers.cfm?abstract_id=2558931