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Taxation of Trusts - ATAX0605
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Faculty: Faculty of Law
 
 
School:  Australian School of Taxation
 
 
Course Outline: See below
 
 
Campus: ATAX Campus
 
 
Career: Undergraduate
 
 
Units of Credit: 6
 
 
EFTSL: 0.12500 (more info)
 
 
Indicative Contact Hours per Week: 0
 
 
Enrolment Requirements:
 
 
Prerequisite: 48 units of credit completed and a cumulative weighted average of at least 65
 
 
Excluded: ATAX0305, ATAX0405, ATAX0505
 
 
Fee Band: 1 (more info)
 
 
Further Information: See Class Timetable
 
 

Description

The trust is a major form of vehicle used for holding investment assets, for transferring family wealth to future generations and for income splitting. In addition, fixed public trusts, which are now commonly known as public unit trusts, funds or 'collective investment vehicles', have become a major form of public investment vehicle. Most superannuation funds are, in fact, trusts. The trust is not a distinct legal entity and is not taxed as a separate entity. The primary rule is that the beneficiary under a trust is subject to tax. Only where the beneficiary is not subject to tax will the trustee be assessed to pay tax. This course is mainly concerned with establishing when the primary rule applies, and when it is displaced by the exceptional rules. An understanding of the specific tax treatment of trusts is important to any student setting out to acquire, or refine, an understanding of the Australian tax system.


Recommended Prior Knowledge

As in many other areas of taxation, the analysis of the tax treatment of trusts necessarily involves a consideration of capital gains tax issues. You may, accordingly, benefit from undertaking the course 0311/0411/0511/0611 Taxation of Capital Gains prior to, or concurrently with, this course.

Course Objectives

This course aims to develop and promote a knowledge of the principles and policy considerations which have particular application to the taxation of trusts, including unit trusts. It aims to develop a critical approach to the manner in which trusts are taxed and the implications of this for investors and the tax system. It instils a knowledge of the cases on the taxation of trusts and an understanding of the reasons for the various integrity measures affecting trusts.

Main Topics

  • Taxation of income of trusts
  • The trust loss measures and family trust elections
  • General anti-avoidance and other integrity measures
  • Application of Parts 3-1 and 3-3 to trusts other than unit trusts
  • Unit trusts, their nature and their uses from the point of view of the tax law
  • The future taxation of trusts

Assessment

2 assignments
1 exam

Course Texts

Prescribed
Barkoczy S, Australian Tax Casebook (Sydney: CCH Australia Limited, latest edition)

Acts
You must purchase or have access to the following publications:
  • Income Tax Assessment Act 1936
  • Income Tax Assessment Act 1997
Citation and Style Guides
The following is a selection of acceptable citation and style guides, which you may use as the basis for your written work. You must purchase or have access to one of the following publications:
  • Rozenberg P, Australian guide to uniform legal citation (Sydney: Lawbook Co, 2nd ed, 2003)
  • Stuhmcke A, Legal referencing (Sydney: Butterworths, 3rd ed, 2005)
  • Australian guide to legal citation (Melbourne University Law Review Association, 2nd ed, 2002) - Available from http://mulr.law.unimelb.edu.au/aglc.asp
Recommended
Refer to Course Profile provided by Lecturer at the beginning of session.

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© The University of New South Wales (CRICOS Provider No.: 00098G), 2004-2011. The information contained in this Handbook is indicative only. While every effort is made to keep this information up-to-date, the University reserves the right to discontinue or vary arrangements, programs and courses at any time without notice and at its discretion. While the University will try to avoid or minimise any inconvenience, changes may also be made to programs, courses and staff after enrolment. The University may also set limits on the number of students in a course.