Examples of BNR advocacy

Whoever subscribes to the theory about the certainty of death and tax, probably hasn’t stood in the shoes of a legal personal representative (LPR) attempting to administer the estate of a deceased person in a modern taxation system. Remember, that the LPR is personally exposed to liability for income tax in relation to the affairs of the deceased and of their estate.

Current at 1 November 2021

Examples of BNR advocacy

Whoever subscribes to the theory about the certainty of death and tax, probably hasn’t stood in the shoes of a legal personal representative (LPR) attempting to administer the estate of a deceased person in a modern taxation system. Remember, that the LPR is personally exposed to liability for income tax in relation to the affairs of the deceased and of their estate.

Current at 1 November 2021

But in ascertaining the extent of that liability there can be much to be uncertain about, for example, how is the LPR to know whether the deceased’s returns were accurate; how do they work out the amount of any capital gain or loss from an asset if they cannot locate the deceased’s cost base records? Aside from these practical questions is the broader question of how to deal with the general uncertainties in the operation of the income tax law.

The LPR can make a voluntary disclosure or seek a private ruling. But this newsletter highlights how you, as practitioners, can assist the Society of Trust and Estate Practitioners (STEP) and other professional bodies advocate for changes to the law or for advice from the ATO to create certainty for taxpayers in general. Remember many voices can make a difference.

You may be interested in some of our own BNR advocacy pieces:

Reflecting on recommendation 6 – this document is a response to the IGTO recommendation that the ATO consult with tax professionals and the Board of Taxation about the possibility of removing estates from the trust taxation regime.  The aim of the paper is simply to kick-start a discussion about the issues highlighted by that recommendation. We have outlined one approach, there are no doubt others, and there are definitely more issues that need to be scoped as part of our suggestion.  But as with all change, it is a matter of starting somewhere.

Administrative irritants – this document is a response to the ATO Tax Practitioner Stewardship Group following on from the IGTO report. As the link suggests, this paper focuses on tax system irritants that we have identified in our practice relating to the administration of deceased estates.

Public advice topics -this document is a response to the ATO Tax Practitioner Stewardship Group about topics that might be suitable for public advice. Again, public advice is binding on the ATO and thus provides the same level of protection as a private ruling.

 

If any of these things resonate with you, or you’ve identified ay other issues that you think warrant a legislative amendment or advice from the ATO, then let BNR, STEP or your local Law Society know.

 
 

Feel free to contact our team should you want to discuss this topic further and potentially have clients who may be in this situation.

 

 

This publication is not intended to be and should not be used as a substitute for taking taxation advice in any specific situation. The information in this publication may be subject to change as taxation, superannuation and related laws and practices alter frequently and without warning.  Neither BNR Partners Pty Ltd, our employees or agents are responsible for any errors or omissions or any actions taken or not taken on the basis of this publication.