An Analysis of the Concepts of 'Present Entitlement'

Anna Everett, Bond University

Abstract

The correct allocation of tax liability under a trust is determined by reference to the beneficiary’s ‘present entitlement’ to the income of the trust. It is apparent that the equitable nature of the parties’ interests, under a trust, has made the determination of tax liability difficult. In order to clarify the position, this article will outline the equitable principles referred to in case law.