Tax case: Trust loss scheme a scam
Source: Taxation In Australia Journal Article
Published Date: 1 May 2006
Raftland Pty Ltd v FC of T [2006] FCA 109.
The Federal Court has affirmed the Commissioner of Taxation’s (“Commissioner”) amended assessments totalling $4.205 million after finding that a taxpayer’s purported distributions of income to a unit trust with accumulated tax losses were a sham. The Court also held that the trust stripping provisions of s 100A of the Income Tax Assessment Act 1936 (“ITAA36”) applied. As a result, the income that was deemed not to have been distributed was assessable to the trustee under s 99A.
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Details
- Published By: Anna Tang
- Published On:1 May 2006
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