CGT concessions denied for non-fixed trusts, as Federal Court sides with Commissioner

This case reinforces the need for trustees of trusts with non-resident beneficiaries to consider whether their trust is a fixed trust, write Neil Lamb, Steve Plant and Ann Wang.

The Federal Court of Australia’s recent decision in N & M Martin Holdings Pty Ltd v Commissioner of Taxation (N & M Martin) has reaffirmed that gains arising from sale of shares in an Australian company by a discretionary trust were assessable to a non-resident beneficiary.This decision is consistent with Peter Greensill Family Co Pty Ltd (trustee) v Commissioner of Taxation (Greensill) and the view previously expressed by the ATO in Draft Taxation Determination TD 2019/D6.N & M M...

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Authors: Neil Lamb, Steve Plant,

Published Date: 02 September 2020