Trusts to avoid tax will be declared void by the Taxation Office, so people interested in legitimate vehicles for tax planning need to contact taxation and legal specialists who will advise them of the best option for their situation. http://www.abclegal.com.au

1. Seek Advice Before Becoming Involved in Trusts to Avoid Tax
If most taxpayers were asked to give an honest opinion on the payment of taxes, it is likely
they would prefer it if the payment of tax was not required. However, we live in a system
where we pay taxes in exchange for the provision by governments of infrastructure, services
and security, and most law abiding Australian citizens appreciate this. For the average
taxpayer who does not have access to the more complex tax reduction options, the creation
of trusts to avoid tax is considered unfair. Generally, people will pay their taxes willingly if
they think the system is equitable.
There is no reason why careful tax planning cannot be part of a system that is equitable.
However, care should be taken to ensure that tax planning does not become tax evasion,
especially when legitimate vehicles exist. The difference between the two can become
complex, and the advice of specialist tax lawyers Brisbane is essential to ensure that any
action taken is permissible.
Generally speaking, trusts to avoid tax that have no other redeeming features will be void
and the Commissioner of Taxation can cancel the benefit if it’s established that a person
entered the scheme to obtain that benefit. There are several definitions of just what
constitutes a tax benefit, and it’s important to understand these.
One definition is an amount not included in the assessable income of the taxpayer that
would reasonably be expected to be included had not the scheme existed. Another is a
deduction that may not have been allowable in other circumstances ie. if the scheme had
not existed. A third is a capital loss that may not reasonably have occurred had the scheme
not existed and a fourth is a foreign income tax offset that would not reasonably have been
allowable had the scheme not existed.
The other important term that needs to be defined in this context is that of a “scheme”.
Taxation legislation defines a scheme as an agreement, arrangement, understanding,
promise or undertaking, express or implied, enforceable or not by legal proceedings; and a
plan, scheme, proposal, action, course of action or course of conduct.
The concept of reasonable expectation lies at the heart of the matter. This involves making
an assessment as to what would have happened if the scheme was not entered into and has
to be sufficiently reliable for it to be regarded as reasonable. These kinds of decisions are
best made by experts in taxation law and advice should be sought from experienced
Solicitors Brisbane.
Because trusts to avoid tax are void, any tax planning scheme should be based on the use
of legitimate vehicles which can be very effective in arranging tax matters to their best
advantage, and still complying with the law. Expert opinion and assistance is essential for
taxpayers who are concerned that they stay within the bounds of the legislation.

2. http://www.abclegal.com.au