05 February 2021
Trusts - Surcharge duty and land tax where unit trust has discretionary trust unitholder
Do the foreign tax changes to discretionary trust deeds also apply to unit trusts owned by discretionary trusts?
Thank you for the question.
The unit trust will be liable for foreign surcharge duty and land tax if the discretionary trust unitholder does not have the appropriate restriction on foreign persons benefitting from the trust.
See the NSW Revenue page Foreign surcharges and discretionary trusts and in particular Example 5.
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