Topic: Taxation
Compare and contrast the two cases Harmer v FCT 91 ATC
5000 and Dwight v FCT 92 ATC 4192 and critically analyse
how they arrive at opposite conclusions in respect of present
entitlement of trust beneficiaries to trust income.
2. There have been many legal cases where the treatment of a trust for taxation purposes has depended on an interpretation of the trust deed and surrounding circumstances. Select two recent
cases (other than the Bamford decision—refer to topic 1) and
3. In June 2010, the ATO issued TR 2010/3 regarding the
application of Div 7A to unpaid present entitlements.
Critically examine the ruling, considering:
the reason why the ATO is addressing this issue
whether the ruling is correct in law, and
the implications of the ATO’s approach to groups that
include a trust and a private company in the group
4. The enactment of Div 6E ITAA36, in conjunction with
amendments to Subdiv 115–B and other provisions in Div 6,
significantly changes the way that capital gains derived by trusts
will be taxed. Critically analyse how these provisions operate in
respect of capital gains. In particular, you should comment on
whether or not these provisions operate in a more equitable
manner than the law was prior to the enactment of Div 6E and
the other amendments.
