Section 100A: Final ATO Rulings – but what’s the end game for trusts?

Last week, the Australian Taxation Office (ATO) released the final versions of its ruling (TR 2022/4) and Practical Compliance Guideline (PCG 2022/2) on Section 100A of the Income Tax Assessment Act 1936.

The Hall & Wilcox Tax team conducted a webinar on this critical issue for the private and SME market.

Frank Hinoporos, Partner and Head of Tax, drew on the Hall & Wilcox Tax team’s practical experience managing section 100A related matters, explaining:

• the background of section 100A and the evolution of the Commissioner’s view;
• TR 2022/4 and PCG 2022/2 and what has changed since the ATO first provided its views in draft;
• recent judicial consideration of section 100A in Guardian AIT and BBlood (both on appeal in the Full Federal Court) and what we learn from the case law;
• practical strategies for practitioners to diagnose and manage section 100A risk, in light of the ATO’s guidance; and
• the ‘bigger picture’ question of what this means for the use of trusts as a business and investment structure.

Frank has been immersed in section 100A and the development of the ATO’s final guidance material.  In addition to being involved in a number of active section 100A matters being handled by the Hall & Wilcox Tax team, Frank presented on section 100A at the Tax Institute’s Noosa Tax Convention in November 2022 and was invited to share his views on the final ATO guidance material in the Australian Financial Review last week.