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Medical practitioners often know of a
colleague who has been sued by a person
who claims they have suffered loss as a
result of the professional activity of the
doctor. There have been many cases and it is
highly recommended that doctors should be
appropriately insured.
Less well known are the risks to doctors
who structure their affairs on the basis of
advice from professionals who do not keep
up to date with changes in the law. Here
we will consider two areas where doctors
may want to check that their current
arrangements are in line with the latest
version of the law, along with the attitude
of the Commissioner of Taxation.
Case 1: Commissioner of Taxation
v Janmor Nominees Pty Ltd
In this case a doctor established a family
trust as well as a corporate trustee, Janmor
Nominees Pty Ltd, to protect his assets. Mr
Justice Murphy, in the Supreme Court of
Victoria, stated: "Mr Redman believed by
establishment of the trust arrangement, he
could inter alia avoid the risk of personal
ruin should any `malpractice' suits be
brought against him personally.
He is, by profession, a facial maxillary
surgeon who, at the relevant time, practiced
in the Frankston and Malvern areas in
Victoria. He also believed that by means of
the trust he could be somewhat relieved of
TRUST WORTHY
Are your asset-protection arrangements up to date and in accordance
with current law?
Donal Griffin discusses two cases that demonstrate the
importance of regularly checking your strategies with a specialist lawyer.
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Donal Griffin is Director
of de Groots Lawyers.