South Australia’s Thomas family, founders of Thomas Foods International, is fighting a $13.2 million tax bill in the Federal Court. The bill came after advisers named 22-year-old Chloe Thomas in trust paperwork, reports said.
Key Facts
- Family: The Thomas family, Thomas Foods International.
- Bill: $13.2 million, paid in 2023.
- The mistake: Chloe Thomas was named the “test individual” for two family trusts, while her grandfather Chris Thomas was the test individual for another.
- Result: A 47 per cent family trust distributions tax applied when money moved between trusts.
- Court: The family wants the error fixed and the money back.
What Is a Test Individual?
Reports said the trusts named different test individuals. Because of that mismatch, money moved between the trusts was taxed at 47 per cent.
Calls for Reform
CPA Australia said family trust rules are punishing honest mistakes.
Frequently Asked Questions
Why does the Thomas family owe $13.2 million?
Because of a mismatch in who was named as the test individual across family trusts.
Who is Chloe Thomas?
The 22-year-old granddaughter of Chris Thomas.
What does the family want?
For the court to fix the error and return the money.
Conclusion
The case shows how small paperwork errors can have big tax costs.
Related reads: The Man I Loved Never Existed: How I Found Out My Husband of 10 Years Was a Predator; Health Star Ratings May Become Mandatory as Industry Falls Short; A Plea to Protect Players: Samoa Stars Speak Out After Eli Katoa’s Terrifying Head Injury.
Leave a Reply