A beneficiary of two trusts whose assessable income wasnincreased from some $70,000 to some $13 million in light of hernentitlement to distributions from the trusts has been unsuccessful in claimingnon appeal that she had “disclaimed her interests” in the trusts. Instead, thenAAT found that she could not argue she had disclaimed her interests in thendistributions. This finding was on the basis that she did not bring up havingnmade “disclaimers” when she originally objected to amended assessments that thenCommissioner of Taxation issued in 2013. Additionally, in any event, the AATnfound that the disclaimers were legally ineffective because of the significantnperiod of time between the distributions being made (in 2006 and 2007) and thendisclaimers being made (in 2015).
nImportant: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.