Workshop on Bamford & UPEs - Where to now? (Mackay)

The ATO has released its Decision Impact Statement (DIS) and practice statement on the Bamford decision, and TR 2010/3 and a draft practice statement on the application of Division 7A to unpaid present entitlements.

The DIS makes it clear the ATO considers that many trust issues remain unresolved and the position taken on UPEs will create many difficulties for practitioners.

In this workshop, we will look at the implications of the Commissioner's views on the Bamford case and UPEs and consider the following issues.

• What is the best way to define trust income in trust deeds to take advantage of Bamford? In particular, when will a section 95 "equalisation" definition not be appropriate? 
• The importance of excluding notional amounts (such as imputation credits) from the definition of income.  
• Is it still possible to stream different types of income and capital gains given the Commissioner's contention that Bamford decided that beneficiaries to whom distributions are made receive a single undissected lump sum?  
• What are the implications of the Commissioner's proposition that Division 6 is not an exhaustive code to determine whether distributions to beneficiaries are assessable?  
• How should you word distribution minutes in future and is it necessary to make sure the income resolutions are passed before 30 June?  
• What do clients do if they have UPEs that the ATO considers are “section two” loans in TR 2010/3?
• What are the implications if there is a “section 3”  loan under TR 2010/3?
• How do you avoid triggering a “section 3” loan?
   

Program   
12.15pm Drinks and light refreshments
12.30pm Welcome and Introduction
Seminar: “Bamford & UPEs - Where to now?”  
2.00pm Close