Submission on the draft discussion paper 'trust income, share, distributable income and other related matters'.
Our members include the major Australian real estate investment trusts (AREITs), property advisors and direct investors who are significantly impacted by the proposalsin the discussion paper.
We are aware that you are using the discussion paper to prepare an administrative guidance note that will help ATO staff appropriately deal with trust tax issues.
We support the ATO providing clearer, transparent guidelines; however, we believe the discussion paper needs further refinement.
Our members are concerned that the ATO's proposals for determining the income of a trust are inconsistent with long standing judicial interpretation and, therefore, out of step with industry practice for managed funds.