A report commissioned by the ATO has found that wealthy people are using private trusts to funnel money and avoid paying tax of up to several billion dollars every year.
The report, by RMIT University said some wealthy Australians and high net wealth individuals were putting money into discretionary trusts to manipulate the tax system so they could pay less tax.
Law Professor John Glover, an author of the report, told say that Australia is behind other countries when it comes to the regulation of trusts.