Trustee for the Michael Hayes Family Trust v Commissioner of Taxation [2019] FCA 426

TAXATION – income tax – trusts – whether a trust is a “public trading trust” pursuant to s 102R(1)(b) of the Income Tax Act 1936 (Cth) – whether trust is a public unit trust – application of s 102P(10) – whether the trust’s “beneficial interest in property” of another trustee estate consists of the units of a unit trust – scope of “beneficial interest” necessary for s 102P(10) – whether trust is a “trading trust” operations of a trading business – whether trustee not liable under s 99A because it was not entitled to the net income of a trust TRUSTS – construction of trust deed – whether trust deed ambiguous – where trust deed identified “Second Absolute Beneficiary” as a named company “as trustee for” a specified superannuation fund – need to consider surrounding circumstances – whether named company or the trustee of the superannuation fund at the time the trust deed was made should be preferred TRUSTS – rectification of trust deed – whether rectification available as an alternative to construction – where deed of rectification entered into – use that can be made of deed of rectification – whether order of rectification would be appropriate as an alternative to construction

Full decision here