FAMILY TRUSTS – AUSTRALIA

Company tax cut eligibility ‘mind-boggling’

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 11-Jul-17

Tax experts say the Australian Taxation Office’s updated advice on the application of small business tax cuts to passive family investment companies does little to clarify the situation. The ATO previously advised that the 27.5 per cent tax rate will apply to companies whose activities are "passive", but this has been changed to "relatively passive" in a revised statement. Mark Leibler of law firm Arnold Bloch Leibler says the Federal Government clearly intended for the tax cuts to apply solely to businesses that actively trade.

CORPORATES
AUSTRALIAN TAXATION OFFICE, ARNOLD BLOCH LEIBLER, THE TAX INSTITUTE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COUNCIL OF SOCIAL SERVICE

Scurry to plug tax loophole for the wealthy

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Original article by Nick Tabakoff
The Australian – Page: 2 : 5-Jul-17

Financial Services Minister Kelly O’Dwyer has advised the Australian Taxation Office that the Federal Government’s tax cuts for small businesses were not meant to apply to passive family investment companies. BDO’s Tony Sloan argues that the ATO is merely applying the existing tax cuts legislation, which he says is sufficiently broad to include family investment vehicles. Sloan adds that the Government may have to amend the legislation in order to ensure that such investment vehicles cannot claim tax refunds and deductions.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, BDO CHARTERED ACCOUNTANTS AND ADVISERS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

ATO signals tax windfall for wealthy

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Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 4-Jul-17

A draft tax ruling issued by the Australian Taxation Office in March 2017 could allow "passive" family investment companies to claim tax refunds and deductions. The draft ruling overturned the generally-accepted view that such family investment companies – which do not actively carry on a business – would not be eligible for the reduction in the company tax rate for small businesses from 30 per cent to 27.5 per cent over recent years. Tony Sloan of BDO says the draft ruling would affect many of the firm’s clients, as most would have filed tax returns for 2016 at the full tax rate of 30 per cent.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BDO CHARTERED ACCOUNTANTS AND ADVISERS, NATIONAL TAX LIAISON GROUP

Roy Hill the target as Rinehart kids chase Gina’s assets

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Original article by Leo Shanahan, Andrew Burrell
The Australian – Page: 8 : 20-Nov-14

The private Hancock Prospecting vehicle of mining heiress Gina Rinehart owns 70% of the major Roy Hill iron ore project in Western Australia. It has become the subject of the latest court action against Rinehart by her two oldest children, after a previous case relating to her role as trustee of the $A4bn billion Hope Margaret Hancock Trust. Following the lifting of a suppression order by Federal Court judge Peter Jacobson, it has emerged that John Hancock and Bianca Rinehart now dispute their mother’s ownership of the Hope Downs, Mulga Downs and Roy Hill tenements

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL IRON ORE PTY LTD, MULGA DOWNS IRON ORE PTY LTD, HOPE DOWNS IRON ORE PTY LTD, HOPE MARGARET HANCOCK TRUST, FEDERAL COURT OF AUSTRALIA, THE HANCOCK FAMILY MEMORIAL FOUNDATION LIMITED, HANCOCK RESOURCES LIMITED, SUPREME COURT OF NEW SOUTH WALES, MARUBENI CORPORATION, CHINA STEEL CORPORATION, POSCO

Kennett in Rinehart spotlight

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Original article by Leo Shanahan
The Australian – Page: 6 : 26-Jun-14

The Supreme Court of New South Wales on 25 June 2014 heard that Ginia Rinehart was nominating three candidates for the role of trustee of the family trust at the heart of the legal action. It has been launched by her two eldest siblings against her mother, mining heiress Gina Rinehart. The latter has in the past had sole control of the $A4bn trust, which owns 23.4% of the Hancock Prospecting company. One of the three nominees is Stephen Harvey of Equity Trustees, cross-examined by barrister Christopher Withers about the ties between the Rineharts and Jeff Kennett. The ex-Victorian premier sits on the firm’s board

CORPORATES
EQUITY TRUSTEES LIMITED – ASX EQT, HANCOCK PROSPECTING PTY LTD, HOPE MARGARET HANCOCK TRUST, SUPREME COURT OF NEW SOUTH WALES

Swimmer stars in family feud

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Original article by Hannah Low
The Australian Financial Review – Page: 3 : 25-Jun-14

The Supreme Court of New South Wales on 24 June 2014 continued hearing the dispute over the Hope Margaret Hancock Trust, which owns 23.4% of Hancock Prospecting. Mining heiress Gina Rinehart is accused by two of her children of improperly controlling the entity. Daughter Bianca Rinehart argues she is fit to take over as trustee, and was cross-examined by Richard McHugh SC on behalf of younger sibling Ginia Rinehart. It was also revealed by Chris Withers, acting for Bianca Rinehart, that close friend and Olympic swimmer Grant Hackett was contacted by the mother on 22 June

CORPORATES
HANCOCK PROSPECTING PTY LTD, HOPE MARGARET HANCOCK TRUST, SUPREME COURT OF NEW SOUTH WALES

Rinehart feud risks iron ore project: daughter

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Original article by Andrew Burrell
The Australian – Page: 6 : 24-Jun-14

Supreme Court of New South Wales judge Paul Brereton will on 24 June 2014 hear more on the suit brought by John Hancock and Bianca Rinehart against their mother, mining heiress Gina Rinehart. The issue is the latter’s control of a family trust that owns 23.4% of Hancock Prospecting and a stake worth $A10bn in the Hope Downs iron ore tenements. The daughter will argue that she is qualified to act as the new trustee after her mother has stepped down, and that to appoint someone from outside the family may trigger a clause under which partner Rio Tinto would acquire all of Hope Downs

CORPORATES
RIO TINTO LIMITED – ASX RIO, HANCOCK PROSPECTING PTY LTD, HOPE DOWNS IRON ORE PTY LTD, HOPE MARGARET HANCOCK TRUST, SUPREME COURT OF NEW SOUTH WALES