High Court Decision Means Government Must Legislate On Trusts

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30th March 2010, 05:18pm - Views: 1340







Media Release

Taxation Institute of Australia




Tuesday March 30, 2010









*RE-ISSUING CURRENT VERSION*


High Court decision means Government must legislate on trusts


The country's leading professional association in tax, the Taxation Institute of Australia, says today’s

High Court decision in the Bamford case regarding the taxation of trusts makes it imperative that the

Federal Government step in with 21st Century legislation.


The Institute says the High Court judgement clarifies two issues but leaves other key issues

unresolved.


“The Government must step in with a legislative solution or an estimated one million trusts will remain in

the dark,” said Institute president David Williams.


The High Court itself stated that it is more than 20 years since the courts first identified the need for

legislative clarification in this area of tax law.  Taxpayers will continue to face uncertainty in the area

until there is a legislative fix of the 50-year-old provisions. 

 

The Government should grasp this opportunity to re-write the trust income provisions of the tax law to

align it with the enormous changes that have occurred since it was drafted, as part of their ongoing

reform process.


“The Federal Government must update the whole system of taxing trusts,” Mr Williams said.


“Mulling over a High Court decision that hasn’t provided all the answers is not an option.” 



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About the Taxation Institute of Australia:  The Taxation Institute is Australia’s largest and most diverse body of

tax professionals working together to improve the tax system and the delivery of tax services through education,

sharing of information and consultation.


Media Contacts:

Robert Jeremenko, Senior Tax Counsel - Taxation Institute of Australia on 0468 987 300




Craig Regan – Lighthouse Communications (0408) 448 527






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