Many clients use trusts to hold income-earning assets and investments. With the advent of the Trusts Act 2019 clients have been reviewing their trust arrangements. Often this review has resulted in a recommendation to resettle their existing trust onto a new trust with a modern trust deed. Resettling a trust is a disposal for income tax purposes and a supply for GST purposes. Accordingly, a resettlement can trigger unwanted income tax and GST obligations such as triggering tax under the bright-line rule, resetting the bright-line date, and leaving trustees with GST liabilities.

The focus of this webinar will be on taxation issues associated with resettlements of trusts.

Issues examined will include:

• General income tax rules applying to resettlements
• Implications under the bright-line test
• Effects on shareholder continuity where the trust is a shareholder
• General GST rules applying to resettlements
• Time of supply and value of supply rules

Upon satisfactory completion of this activity, you will be able to:

• Identify potential income tax and GST issues associated with trust resettlements.
• Understand when rollover relief from the bright-line test will apply
• Ensure unexpected income tax and GST obligations do not arise from a trust resettlement

Suited to

• accountants and lawyers who act for trusts
• accountants and lawyers who are trustees of trusts and want to ensure the trust is meeting its tax obligations.

1.25 CPD hours

PRESENTER

Stephen Richards
Stephen is Partner in the Tax Advisory team at Findex. Findex is one of the largest providers of integrated financial advisory and accounting services to individuals, SMEs, and corporates in Australasia.
Stephen has been practising in tax advisory for over 25 years and is a sought-after speaker on tax topics, including for CCH, CAANZ, and TEO Training courses and lecturing in taxation practice at the University of Otago.