Comparative analysis of trust taxation: a deep dive into Australian and Canadian regimes

Abstract

This article examines trust taxation in Australia and Canada, focusing on the Australian Income Tax Assessment Act 1936's Section 97(1) and the Canadian Income Tax Act’s Section 94.1. It explores the Australian Carter and the Canadian Fundy Settlement cases, highlighting their implications for tax avoidance strategies. The article employs a comparative methodology to provide insights into the policy and legislative nuances shaping trust distribution taxation in these jurisdictions. The goal is to bridge traditional legal frameworks with modern fiscal challenges and inform future reforms in common-law countries.