Cross-border issues affecting the Australian taxation of trusts. 27 July 2022

The seminar will cover:

Trust practitioners around the world are seeing a growing number of clients with cross-border issues. More clients are beneficiaries of foreign trusts. There is no shortage of foreign trust beneficiaries who reside in Australia. Whilst it is rare for Australian discretionary trusts to accumulate income and capital gains (due to the punitive nature of s.99A ITAA36, which all of you have heard of), accumulations are much more common with trusts overseas. However, many trust practitioners (in Australia and elsewhere) have not heard of, do not understand, or fail to take into account the punitive provisions of s.99B, which tax accumulated income and gains when distributed from a foreign trust to an Australian resident beneficiary. 99B is a sledgehammer provision and will be the focus of Jim's talk. When does it apply? How is the ATO approaching it? Are there exclusions? What are your best options to reduce exposure?

About the speaker:

Jim is a Partner of Jackson McDonald Lawyers in their tax and succession team, with 25 years’ professional experience. He advises and represents a wide range of clients including high net worth families and professionals, SME business owners and not for profit entities. His main practice areas are trusts, succession planning, deceased estates, taxation, SMSFs and asset protection. He advises on all areas of Federal and State taxation. Jim holds various degrees and qualifications, including a Masters of Taxation, a Bachelor of Laws, a Bachelor of Commerce (accounting major) and an Advanced Certificate of Public Administration. Jim is a CTA of The Tax Institute. He served on the WA State Council 2015-2018. He has been a member of STEP for over 13 years. He has served on the WA Branch Committee for the past seven years. He was formerly the Chair of STEP WA from 2018 to 2021 and is currently a co-Vice Chair. He has chaired STEP WA’s Policy Sub-committee since it was formed in February 2020. He has been a director of STEP Australia since January 2020, and its Secretary since January 2021. Jim is currently serving on a working group with the Law Society of Western Australia to set up a specialist accreditation program for Wills and Estate Practitioners in WA. He also gives his time as a pro bono lawyer for Law Access supporting the Indigenous Wills Clinic.