ATO cracks down on discretionary trusts
Accountants who manage discretionary trusts for clients may be investigated by the Australian Taxation Office (ATO) as it looks into the legality of the schemes and their potential to foster tax avoidance.
The ATO says it is looking into specific cases of misuse and considering whether the partnerships are "effective at law".
The investigation follows reports of the structures being used to help trustees avoid their tax obligations, ATO second commissioner Bruce Quigley said.
While further advice is still being sought, the ATO said it is in the process of drafting compliance documents to crack down on discretionary trust tax avoidance.
It advised taxpayers to seek independent advice if they have a discretionary trust and said voluntary disclosures could attract a reduction in penalty.
AUTHOR
Staff Writer
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
