Resigning/relinquishing control of a trust or company or beneficial interest in a trust 043-04030080
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Commonwealth Department of Social Services (DSS) advice on relinquishing control of a trust/company and associated partnership
In the past it has been said that a person must resign from all related businesses when they relinquish control of a trust or company. This is particularly relevant for farmers. However, this can be a problem for those farmers who are awaiting final payments for the likes of cereal crops. DSS have now agreed that those people may stay in their partnerships under the following conditions only:
- The partnership has otherwise ceased to trade
- The partnership is wound up when the final payments are made and those income tax returns provided
It would only be accepted that the partnership had ceased to trade if it has been demonstrated that another partnership has taken over the assets and is running the enterprise.
Legislation
Links to the Federal Register of Legislation site go to a 'Series' page. Select the 'Latest' version.
- section 1208M, Individual ceases to be an attributable stakeholder of a company or trust
- section 1208N, Individual disposes of asset to company or trust before 1 January 2002-individual is attributable stakeholder