The ATO has won a legal challenge over when it can claim tax from trust income, with the High Court finding beneficiaries cannot “retrospectively expunge” their entitlements to the proceeds of a trust despite the potential “unfairness” this creates.
The High Court has shot down Greensill founder Lex Greensill’s bid for special leave to challenge a finding that he owes tax on $58 million in capital gains, including income from the sale of shares in the collapsed UK-based supply chain finance company.
Lex Greensill will need to pay tax on $58 million in capital gains, after losing a challenge to a tax assessment which included non-Australian gains from the sale of Greensill shares distributed to the founder of the collapsed collapsed UK-based supply-chain finance firm.
The High Court has granted special leave in a test case by the Australian Taxation Office concerning the effectiveness of disclaimers by trust beneficiaries giving up entitlements to trust income and any associated tax obligations.