Tag Archives: Present Entitlement

Talking Tax – Issue 96

Cases

Taxpayer not presently entitled to contingent distributions

In Lewski v Commissioner of Taxation [2017] FCAFC 145, the Full Federal Court allowed an individual Taxpayer’s appeal against an Administrative Appeals Tribunal decision to uphold amended assessments that included trust distributions in assessable income.

The Taxpayer was a beneficiary of the ACE No 4 Trust (ACE Trust) and the Arjod Trading Trust (Arjod Trust). The Taxpayer’s husband was the sole Specified Beneficiary of each trust. The Commissioner of Taxation purported to assess the Taxpayer on a share of the net income of the trusts. The Taxpayer’s objection and appeal to the Tribunal were disallowed but the appeal to the Court was upheld.

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