Topics on preparing timely trust resolutions (2)

In the ongoing proceedings of Dalby’s case:

1. ATO Requests for Information: While reviewing the objection against the trustee assessment, the ATO requested additional information and granted an extension until October 29, 2018. However, no response was received from the trustee or their tax agent.

2. ATO Decision: On January 3, 2019, the ATO fully disallowed the objection.

3. Trustee's Application for Review: On January 21, 2019, the trustee filed an application for review. However, this application did not mention a trust resolution.

4. Trustee's Statement to Tribunal: On June 3, 2019, the trustee submitted its Statement of Facts, Issues, and Contentions to the Tribunal. Among the issues raised was the concern regarding the Commissioner issuing the assessment solely in the trustee's name, contrary to the Distribution Statement for the year. Additionally, the trustee presented a trust resolution for the 2013 year, distributing income to various beneficiaries, including a corporate one. None of these beneficiaries reported any net taxable income from the trust for that year.

5. ATO's Response: On July 26, 2019, the ATO responded, indicating that if the trustee wanted to address the issue concerning the trust resolution, Tribunal approval would be necessary to add it to the grounds of objection. This is due to the limitation imposed by the Taxation Administration Act, unless otherwise ordered by the Tribunal.

6. Trustee's Attempt to Amend: On September 27, 2019, the trustee requested to amend the grounds of objection.

The Tribunal's decision regarding the trustee's request to extend the grounds of objection to include the trust resolution issue is discussed below. However, it's important to note that this hearing solely focused on the request to extend the objection grounds and did not address the substantive issue regarding the deductibility of a $900,000 loss from gold trading activities, which is scheduled for a later Tribunal hearing.