High Court of Australia

Commissioner of Taxation v Bamford [2010] HCA 10

Bamford v Commissioner of Taxation

240 CLR 481; 84 ALJR 266; 264 ALR 436

30 Mar 2010

Case Number: S310/2009 S311/2009

Before

French CJ, Gummow, Hayne, Heydon, Crennan JJ

Catchwords

Income tax – Income of trust estate - Assessable income of beneficiary - Income Tax Assessment Act 1936 (Cth) ("the Act"), s 97(1) provided that where beneficiary presently entitled to "a share of the income of the trust estate", assessable income of beneficiary included "that share of the net income of the trust estate" - Beneficiaries entitled to specific amounts of distributable income - One beneficiary also entitled to residue of distributable income - Disparity between net income and distributable income - Meaning of "that share of the net income" in s 97(1)(a)(i) of the Act - Whether beneficiaries to be assessed by reference to their proportion of distributable income or specific amounts.

Income tax – Income of trust estate - Trustee determined, pursuant to deed of settlement, net capital gain to be treated as distributable income - Whether net capital gain was "income of the trust estate" under s 97(1) of the Act - Relevance of trustee's determination - Whether "income of the trust estate" income according to trust law or "ordinary concepts" but excluding "statutory income".

Words and phrases – "income of the trust estate", "presently entitled", "that share of the net income of the trust estate", "trust estate", "trustee".

Income Tax Assessment Act 1936 (Cth) – ss 6(1), 95-99A.

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