Trusts are a commonly used business and investment structure in Australia. This course provides an overview of the basic features of a trust, providing an overview of the complexities, risks and opportunities for trustees and beneficiaries.
Key topics:
- The basic features of a trust
- Taxation of trust income
- Corporate beneficiaries
- Family trust elections
- Capital gains tax
- Testamentary trusts
- Refinancing
- Resettlements
This course consists of one online course and one online assessment.
Learning objectives
- Identify the reasons why trusts are used as business and investment vehicles
- Understand how trusts are taxed and when trustees or beneficiaries will be assessed on net income derived by the trust including related planning opportunities in strategically streaming capital gains and franked distributions to certain beneficiaries
- Recognise the issues that can arise when a trust applies the CGT discount or the small business CGT concessions in respect of a corporate beneficiary
- Understand how unpaid present entitlements owed to a corporate beneficiary can be structured to prevent a deemed dividend arising under Division 7A
- Recognise when a family trust election needs to be made and the impact it will have on a trust for the purposes of the trust losses, dividend imputation reporting and withholding provisions
- Identify when each specific CGT event applicable to trusts may apply, and understand the planning opportunities
- Identify the income tax and CGT advantages of using a testamentary trust
- Determine when an interest deduction can be claimed by a trustee on funds borrowed to finance a payment to a beneficiary
- Recognise when specialist advice will be needed to determine whether a resettlement has occurred, and the potential impact of such a resettlement for CGT and income tax purposes
Audience
This course is for tax practitioners with responsibility for the preparation of income tax returns for individuals and businesses involving trusts.
This course is based on the Australian taxation system.
