Investments by trustees not always on capital account

20 April 2011

The Australian Taxation Office has released a draft ruling confirming the treatment of investor versus trader activity and how it is deemed and taxable under the Capital Gains Tax regime.

About the ruling

The ruling confirms that trustees need to determine both their intent and position as an investor or as a trader and ensure that they adequately document their decision and actions.

Failing to do so could mean you have to square up with the ATO and that could prove very costly.

Get advice if you’re unsure

In light of the draft ruling, trustees unsure of their position should seek proper guidance to stay in the right side of the ATO. For more information about discretionary trusts, contact us on 02 9957 4033 or download our factsheet for detailed information.


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