Streaming in Trust Law
Streaming in Trust Law
2016 Trust Symposium

Directing trust distributions to achieve preferential taxation results has come under significant scrutiny in the Australian Courts in the past few years. The judicial response has generally been that tax characteristics cannot be maintained in the hands of beneficiaries. A legislative reform in 2011 was necessary to achieve the sensible policy outcomes of allowing access to franking credits and capital gains tax relief for beneficiaries. The sadly abandoned pursuit of rewriting the trust taxation rules was intended to achieve a more general retention of character for beneficiaries. This paper considers the underlying general law considerations and whether the tax approach is consistent with trust law principles.

Ken Schurgott, Brown Wright Stein, Sydney

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