On 26 March 2008, the Commissioner of Taxation issued Taxpayer Alerts TA 2008/3 and TA 2008/4 on the uncommercial use of certain trusts, particularly on what have become known as "hybrid" trusts. 

Our legal advisers at Macquarie Group Services have enthusiastically welcomed the Commissioner's action.

They feel that the Taxpayer Alerts provide greater understanding of the operation and effect of their products, as well as vindicating their tireless work to ensure that their trust deeds conform with various taxation laws. We hope that the Commissioner now takes complementary compliance action to eliminate rogue behaviour, and that he also provides the market-place with greater certainty with an appropriate education campaign.

To assist you in understanding the Taxpayer Alerts, as well as many of the benefits and controversies surrounding hybrid trusts, MGS have prepared the attached update. If you have any further queries in this respect, please don't hesitate to contact our office.