This on-demand session is available to watch instantly after purchase at the time of your choosing and will expire within 12 Months of purchase.
Date recorded: October 2023
Join Mark Morris as he unpacks CGT event E4 (and not triggering trust capital gains).
This session provides a practical overview of CGT event E4 which may inadvertently trigger a capital gain when a trustee of a unit trust or hybrid trust distributes trust income to unitholders and beneficiaries which has not been subject to tax in the trust.
It will focus on the operative provisions of CGT event E4, the specific legislative exclusions available and how any capital gain can be eliminated or reduced under the CGT discount and the small business CGT concessions. It will also explore planning strategies to prevent its application or mitigate its impact as well as rollout a case study of how the provisions could apply to a closely held group where a unit trust is owned by an intermediary discretionary trust.
Benefits & Learning Outcomes:
- Understand when CGT event E4 may be applied and its potential adverse tax consequences for the beneficiaries of unit trusts and hybrid trusts
- Identify those distributions which are not assessable amounts that activate CGT event E4 and those distributions which can be passed on by the trustee tax effectively
- Determine the amount of any capital gain that may arise under CGT event E4 and how that game can be either eliminated or reduced by applying either the CGT discount or small-business CGT concessions
- Implement strategies to prevent a capital gain arising under CGT event E4 and how practitioners can pragmatically monitor compliance with CGT event E4
Recommended for:
Public practitioners and their staff who advise trusts need to be aware of the adverse consequences of CGT event E4 when a trustee of a unit trust or hybrid trust make certain non-assessable distributions to beneficiaries which may often be only picked up after a capital gain has been triggered. The session enables participants to identify when such a gain may arise and the range of exemptions and pragmatic strategies that could be applied to either eliminate or reduce its impact.
Meet your speaker, Mark Morris
Mark is a Director of TaxKnowHow which provides customised and tailored tax training to small to medium-size accounting firms and sole practitioners across a broad range tax matters including capital gains tax, trust taxation and Division 7A, employment taxes and succession planning. He has over 39 years’ experience in the tax profession having held senior roles in chartered accounting, commerce and academia. He is also a member of the NTLG FBT Working Group and is a regular speaker and author on tax matters.
