Unit Trust Arrangement Ineffective to Avoid Tax Bill on Shares

In a recent complex case, the Administrative Appeals Tribunal held a trust arrangement entered into by a taxpayer where he transferred the equitable interest in his shares in a company to related unit trusts before the sale of the shares did not remove from him either the legal or beneficial ownership of the shares. As a result, the Tribunal found the taxpayer was liable for capital gains tax on the sale of the shares.