Trusts - Bamford v FCT - Landmark decision for Trusts! - Recording

The recent Full Federal Court decision in Bamford v Commissioner of Taxation, is arguably the most landmark and critical on the issue of taxation of trusts. Although Bamford can be considered a win by taxpayers, a number of actual or perceived uncertainties continue to exist in the construction of Division 6, Part III. Practitioners will still need to carefully review trust deeds and distribution minutes despite the decision in Bamford.

Join this session to hear Daniel Smedley and Ron Jorgensen analyse the decision in Bamford, they will discuss:

* The issues that have been clarified by the decision

* The unresolved issues and further areas of uncertainty

Significance of the Bamford decision:

> Confirms the proportionate view is correct even if a beneficiary is allocated a specific dollar amount

> Addresses the more contentious issues of whether “income of the trust estate” in section 97 is a deed dependant concept


Cajkusic v FCT?

In Bamford v FCT [2009] FCAFC 66 Emmett J states unequivocally ‘income of the trust estate’ in section 97 of the Income Tax Assessment Act 1936 (ITAA 1936) means ‘income ascertained by the trustee according to appropriate accounting principles and the relevant trust instrument and in accordance with the ordinary concept of income’. The decision is consistent with and endorses the 2006 Full Federal Court decision in
Cajkusic v FCT. This means that if under the relevant trust deed either pursuant to a power of the trustee or the provisions of the deed a capital receipt or an expense or outgoing is to be deemed to be included in or applied against the income of the trust it will be so treated for the purposes of determining its income.

Who should attend:

This seminar should not be missed by practitioners involved in:

> Trust deeds

> Advises on the taxation of trust income and capital gains

> Preparation of trust tax returns or distribution minutes.