You are acting for Susannah on the purchase from her friend Zali of a corner store in a country town for $300,000. The shop has been leased to Harry and Tom for years and the sale is subject to the lease. Annexed to the contract is a copy of the lease indicating the rent to be under $75,000. The contract indicates that the sale is not a taxable supply for GST purposes because the vendor is neither registered for GST nor required to be registered. Continue Reading..
Bob and Sue run a successful farming business. The business has expanded considerably over the last few years, in part due to the ideas and enthusiasm of their son Bill and daughter Tiffany, who returned home to work on the farm a number of years ago.
“The decision in Clarke means the approach formerly set out in the Statement of Principles is not sustainable”. On 24 October 2012 the ATO released Taxation Determination TD 2012/21 as the final version of Draft Taxation Determination TD 2012/D4.
TD 2012/21 states that amendments to a trust will not create a new trust unless:
1. The changes causes the existing trust to terminate and a new trust to arise for trust law purposes; or
2. the effect of change … is such as to lead to a particular asset being subject to a separate charter of rights and obligations such as to give rise to the conclusion that that asset has been settled on terms of a different trust. Continue Reading..
After copping a bit of a thrashing in some recent Court cases the ATO recently released Draft Taxation Determination TD 2012/D4 which when finalised will revoke and replace the current Statement of Principles on trust resettlements.
The draft determination states that amendments to a trust will not result in a resettlement:
1. unless the amendment causes the trust to terminate for trust law purposes; or
2. the effect of the amendment is to lead to a particular asset being subject to a separate charter of rights and obligations such as to give rise to the conclusion that that asset has been settled on terms of a different trust. Continue Reading..
With the passage of the State Revenue Legislation Further Amendment Bill 2010 through the NSW Parliament on 24 November 2010 the anomaly regarding changes to the trustees of SMSF’s created by amendments to the Duties Act 1997 which came into effect on 1 July 2010 has been removed.
Concessional stamp duty of $50 has been restored on transfers of dutiable property from old super fund trustees to new super fund trustees provided the Commissioner of Stamp Duty is satisfied the transfer is not part of a scheme conferring an interest in the property on the new trustee or any other person to the detriment of the beneficial interest of any person.
However, as is the case with the new section 62A of the Duties Act, the change will only benefit funds that have lodged their first annual return and are noted as “Complying” on superfundlookup.gov.au.
The change is retrospective and has effect from 1 July 2010. Continue Reading..