Australian tax arrangements for trusts: Section 100A of the Income Tax Assessment Act (1936) Cth

Abstract The reason taxpayers make arrangements is because they are able to suit themselves, as well as their and business and investment purposes. Such arrangements are as many and varied as there are taxpayers. It is impossible for a legislator, especially in relation to taxation, which by its very nature is a by-product of being free to so arrange, to set out, or prescribe in detail what is and what is not acceptable, except in the clearest of cases. The use of trusts causes the Commissioner of Taxation some concern and the ATO arguably starts with the position that those using trusts are doing so to lessen their taxation burden. Trusts, however, are used for a variety of personal and commercial purposes. It is the case that taxation considerations are increasingly considered to be a part of the equation. The difficulties around the application of section 100A are causing no little consternation for taxpayers and their advisors, not in the least because the Australian Revenue authorities have taken considerable time to issue their view, while at the same time pursuing taxpayers for alleged breaches of the provision.