Abusive trust arrangements targeted by Australian Authorities

After collecting more than AUD 22.9 billion in liabilities against multinationals, wealthy individuals, trusts and public groups, the Australian Tax Office’s (ATO’s) tax avoidance taskforce aims to focus on ‘abusive trust arrangements’ and their promoters.

Specifically, the agency will tackle HNWI and groups have seeking to exploit tax loopholes, with a major interest in cases where the structures comprehend expatriate beneficiaries or where a resident discretionary trust is liable to capital gains tax on the disposal of a trust asset that was not taxable Australian property.

Increasing attention will be placed on complex trust structures and distribution flows, with the aim to discourage advisors who allow the exploitation of these schemes also through tougher penalties.

SOURCE: www.ato.gov.au