Privacy Policy | Contact Us  
logo
spacer spacer spacer spacer spacer spacer spacer
spacer
spacer
spacer
spacer

Liability limited by a scheme approved under Professional Standards Legislation.

spacer
Hot Issues
Covid-19 resources
Jobkeeper Fraud warning
ATO extends initial JobKeeper payment deadline
Boosting cash flow - ATO
Our website, your resources
ATO releases JobKeeper alternative test
Temporary Working from Home Expenses Rule
Minimum Pensions Halved – 2020 & 2021
More coronavirus support for landlords, commercial tenants
COVID-19: Early Childhood Education and Care Relief Package
What Covid-19 relief packages mean to you.
Now I’m working from home, what can I claim?
Global statistics plus Covid-19 updates
ATO clarifies COVID-19 rent relief concerns
Banks to defer small-business loan repayments for 6 months
Historic $130bn wage subsidy to cover 6 million workers
Stage 2 – Covid-19 stimulus package.
Covid-19 Update - Small Business
PM launches $17.6 billion virus stimulus plan
SG amnesty bill passes Parliament
ATO flags most common SMSF return mistakes
Expected GDP by country 2010 to 2100
ATO expands small business review pilot
A resource hub for our clients.
Risks when dating documents in 2020
Australian Taxation Office (ATO) debts may affect your credit rating
Statistical picture of Australia - Update
Absentee Property Owner – Tax Whack - Victoria
Debate heats up around $10k cash ban bill
Articles archive
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 4 of 2014
Articles
FBT – Christmas Parties and Taxi Fares
Hiring older employees
Deadline - 19th December 2014
Traps in Making Family Trust Distributions
Data matching offshore bank accounts
Estate planning in an SMSF.
Maximising the benefit of Credit Cards
Warning on Bank Offset Accounts
Mining tax gone but watch for associated tax changes
Traps in Making Family Trust Distributions

 

Taxpayers and tax agents need to work closely together to avoid trust distribution problems.


     

Some examples are:-    


Who are the beneficiaries?


Is the proposed beneficiary really a beneficiary?  What does the trust deed say?  Check out who the excluded beneficiaries are.  Has anyone renounced or disclaimed their beneficial interest?  Has anyone been removed as a beneficiary?


Is the information correct?


If they are not named in the trust deed as a beneficiary, then consider whether they have been subsequently nominated.  Any trust documents are relevant from the beginning of the trust.  Has the deed been varied?  Has the definition of income been varied?


Vesting dates


A distribution might be made by one trust to another trust.  If that vesting date is more than 80 years after the date of commencement of the distributing trust, then the distribution is void.


What is income?


When there are differences between the trust income and taxable income, there may be an unexpected tax outcome.


Make sure you can rely on the trust’s tax returns and financial reports and that they are being prepared by a competent accountant.


Default beneficiaries exist?


If a resolution fails, any income or capital gain is distributed to the default beneficiaries (in the deed) and this will avoid the trustee being assessed on the income or capital against at the top marginal rate.  Are the resolutions so contingent that there is uncertainty – hence ineffective?


 


AcctWeb




7th-November-2014
spacer
sitemap | site by Acctweb