The hottest tax topic is trust cloning and the ATO is becoming increasingly active in this area. Cloning typically involves the transfer of assets out of one trust into an identical trust, perhaps for the benefit of particular family members.
The ATO has recently taken a very restrictive view as to which trusts may qualify. This has resulted in considerable debate with the ATO and between advisors.
This seminar gave the views of an advisor and the ATO. Specifically, it covered:
- trust cloning v splitting - the difference
- trust cloning - how it works
- CGT, stamp duty and income tax implications
- what the provisions say
- what the ATO has been saying:
- TR2006/4
- later pronouncements
- solutions in light of the ATO's requirements.