Other ATO Developments
Bamford practice statement
20.08.2009
The Commissioner has issued a practice statement on the way ATO officers are to approach Div 6 ITAA 1936 trust issues pending a determination by the High Court in the Bamford case on the special leave application and, if leave to appeal is granted, on the appeal (PS LA 2009/7).
ATO staff should not select cases for active compliance solely with a view to applying the Commissioner’s view as to the meaning of “income of a trust estate” or “share” in Div 6 ITAA 1936, other than in circumstances (outlined in the practice statement) where there are deliberate attempts to exploit Div 6 ITAA 1936. However, staff should continue to use data matching and other compliance tools to, for example, locate trusts engaged in aggressive tax planning and/or detect under reporting by beneficiaries and/or trustees.
If in non-exploitation cases there is a dispute about the calculation of the net tax income or who should be assessed on it, any assessments and/or amended assessments which may be raised should be based on the Commissioner’s view of “income of the trust estate” and ”share”.
