There are a number of things that need to taken care of for tax purposes prior to moving overseas. One such thing is ensuring the assets of a related discretionary trust does not trigger a capital gains tax (CGT) event.
When the trustee of a discretionary trust changes residency, CGT may apply to assets which aren’t Australian real property assets. A prudent option to ensure the trustee remains an Australian resident is by appointing a private company as trustee which is incorporated in Australia.
A company incorporated in Australia will never lose its Australian residency status.
In order to make sure that these potential CGT issues will not apply to you, please contact our office. We can ensure that the necessary steps are taken so that you are compliant with both the income tax laws as well as the Corporations Act.
