Non-Resident Trust Beneficiaries - the WA Trusts Half Day

Antony Barrier, FTI
Trusts increasing present complex and varied issues for practitioners. In practice, these issues require an application of tax law and trust law, as well as an understanding of ATO views and judicial interpretations.

At the WA Trusts Half Day in May, Antony Barrier, FTI, looks at issues around residency in his session ‘Non-Resident Trust Beneficiaries’, which we look at in more detail here.

Antony told us “Issues involving non-resident beneficiaries may not arise every day, but they certainly come up from time to time. It’s not likely to lessen in frequency or importance, either.”

The challenges involved in advising non-residents of their Australian tax obligations are magnified when the entitlement derives from the non-resident’s interest as beneficiary of a resident trust.

“My session will be a refresher for some, and likely broaden the knowledge of others, depending on their experience. It will be relevant to anyone who has a client with a family trust or who is involved in any other kind of trust, including a deceased estate. I will also cover some international issues for individuals more broadly.”

Looking at the interaction of the rules imposing tax on non-residents with those assessing presently entitled trust beneficiaries, Antony’s session will cover planning techniques for Australian resident trusts with non-resident beneficiaries, and look at Australia’s ability to tax foreign residents through “Taxable Australian Property'; residence and source; and Double Tax Agreements.”

Antony said “I’ll be diving into the interaction between the trust assessing provisions in Division 6 and Australia’s taxation of non-residents. So, parts of Division 6, Division 855 (taxable Australian property, etc.), source, residence, and DTAs - essentially how tax is calculated and imposed on income and gains made by resident trust estates when distributing to non-residents.”

This session also looks at the CGT implications of Australian trusts distributing gains from TAP and non-TAP assets to non-resident beneficiaries, trust residency issues and consequences, beneficiary jurisdiction issues, as well as practical aspects like taxing trustee v beneficiary, timing and payment of tax.

A lawyer with Munro Doig, Antony has been practising in tax for just over 10 years, with Munro Doig for his entire career, apart from a short spell in the tax group of a national firm, and a stint overseas, in a small boutique firm in London which specialised in international tax planning. 

Antony joined the Institute as a member before heading to London, taking up membership again on his return. He is a member of WA’s Professional Development committee.

Of the rest of the half-day program he said “Both of the other sessions are topical. The limits on trust deed amendments is something we’re always interested in in my office, so I am curious to hear Modiesha Stephens and Lucy Ferreira’s take on that.  I’m also interested in Laura Coles and Lee Nugawela’s views on the efficacy of income equalisation clauses. 

Antony told us that, outside of his life in tax “I’ve become unnaturally interested in lawn care since having kids, which is a surprising and not altogether welcome development. Our kids are still little so we’re around home a lot, so I don’t really do… anything, to be frank. I do like all kinds of sports and catching up with mates when I’m able to. I’m planning a bit of a road trip to the Grand Final this year, with a couple of my groomsmen who, like me, are turning 40.”

The Trusts Half Day takes place 23 May 2018, at City West Receptions in Perth.

You can hear from Modiesha Stephens, CTA about the session she co-presents with Lucy Ferreira, ‘The Truth Behind Trusts’ in her post here, or view the full program on our website.

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