Recently the head of CST Tax Advisors in Sydney, Matthew Marcarian and Boon Tan (head of CST Singapore) published an article in the STEP Journal for February 2019 – entitled the “Road to OZ”.
The article describes how beneficiaries of international trusts would be taxed when they move to Australia and its considers three of Australia’s tax regimes that deal with the taxation of foreign trust income in Australia. Those regimes include the present entitlement regimes, Australia’s Transferor Trust rules and Australia specific anti-roll up rules relating to trusts. A link to the article which can be access by STEP Members can be found here. https://www.step.org/journal/step-journal-february-2019-full-issue/road-oz
Australia is an increasingly popular destination for international families to either relocate to or to send their children for work or study or to indeed to start a business. CST Tax Advisors in Sydney can assist other accounting firms globally with questions about this complex area to ensure that the income tax position if carefully managed to avoid then negative, unplanned for outcomes in Australia.
Global Families are an important focus for CST Firms globally. Trusts in Australia are widely used but the approach to taxation is very different in Australia as compared to other countries. Where Global Families have international trusts it can become an area of great complexity unless they receive integrated advice.
We are always looking for firms to join CST International who enjoy this area and can provide support to CST firms in different locations.