Education
Trusts - Recent ATO Rulings
People
who establish education trusts for the benefit of their
family members have been warned by the ATO that payments
to students from the trusts may be subject to tax.
Acting
Tax Commissioner Michael D'Ascenzo said some people are
setting up education or scholarship trusts for family
members, and attempting to take advantage of laws that
allow scholarship and bursary winners to receive their
awards tax free. The Tax Office has published its view
in Taxation Ruling TR 93/39. "The ruling confirms
that these types of payments are only tax exempt if they
are received by a student who has won an award or been
selected through an open process", Mr D'Ascenzo said.
If
you would like further information, please contact us
on 02 4926 4522 or email your enquiry to mail@perryure.com.au
