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012-047 - Unit Trusts - Taxation Treatment

This paper analyses how Unit Trusts are structured and includes commentary on the components of a Unit Trust as well as an explanation on how Unit Trusts are utilised, particularly from the point of view of a small/medium enterprise. The paper, including Addendums, is presented in eighteen pages, i ...Read more
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This paper analyses how Unit Trusts are structured and includes commentary on the components of a Unit Trust as well as an explanation on how Unit Trusts are utilised, particularly from the point of view of a small/medium enterprise.

The paper, including Addendums, is presented in eighteen pages, including commentary on:

  • Introduction To Unit Trusts
  • Determination Of Unit Trust Profit
  • Unit Trust Taxable Income
  • Comparison To Partnerships
  • Unit Trust Paying Tax
  • Capital Gain
  • Trust Losses
  • Bad Debts
  • Tests Which Apply To A Unit Trust To Determine Whether A Claim Can Be Made For Prior Year Losses, Current Year Losses or Bad Debts
  • Family Trusts - For Unit Trusts
  • Family Trust Election
  • Family Control Test
  • Distribution Of Income From A Family Trust
  • Distribution From A Family Trust To An Interposed Entity
  • Income Injection Test
  • Family Trusts - Is This The Right Election For The Unit Trust To Make?
  • Fixed Trust
  • Tests That Apply To Determine Deductibility Of Trust Losses And Bad Debts For A Unit Trust That Is Not A “Family Trust”
  • Income Injection Test For Unit Trusts Which Are Not “Family Trusts”
  • 50% Stake Test
  • Discretionary Trust Owning Units In A Unit Trust
  • Exemption For Discretionary Trusts - Other Than Being Family Trusts
  • Capital Gains Tax Issues For Unit Trusts

and includes Addendums:

  • Tests For Determining Whether A Unit Trust Is A Family Trust
  • Distributions From A Family Trust That Is A Unit Trust To An Interposed Entity, Elections Necessary; If Distributions Not In Accordance With The Election Family Trust Distribution Tax Imposed At 46.5%
  • Additional Test That A Family Trust, Which Is A Unit Trust, Has To Satisfy
  • Tests That Apply To Determine Deductibility Of Trust Losses And Bad Debts For A Unit Trust That Is Not A Family Trust