Handbook

This course builds on the knowledge and skills you developed in TABL 5582 Taxation of Business Entities and focuses specifically on the trust. The majority of this course focuses on private trusts, but it also covers managed investment trusts.

The course begins by looking in detail at advanced and complex points relating to the fundamentals of a trust, including issues related to the trustee’s duties, vesting, disclaiming an interest in a trust and discretionary and hybrid trusts. You will then consider detailed and challenging aspects of the rules for taxing trusts in Division 6 of the Income Tax Assessment Act 1936 (Cth) that were not covered in TABL 5582 Taxation of Business Entities; the trust loss rules and the legislative rules for streaming capital gains and franked dividends through trusts. The course concludes by looking in detail at what a managed investment trust is and the rules that apply for taxing them.

In this course you will critically analyse legislation, case law and Commissioner’s rulings, but with the broader aim of building a strong understanding of why taxpayers choose to use trusts, competence in identifying issues in relation to trusts and understanding the policy rationale and challenges that trusts present. You will be assessed on a combination of: your participation in an allocated class; a problem-style assignment (which will be available at the start of the trimester) and an open book exam containing several problem-style questions.