Published on 11 Oct 12
by VICTORIAN DIVISION, THE TAX INSTITUTE
The introduction of trust streaming changes has caused many practitioners to panic about ensuring clients’ trustee distributions are correctly in place by 30 June each year. In this paper, Graeme spells out what is needed to methodically address each client’s circumstances by 30 June to ensure your trustee client, and you, are safe from ATO scrutiny.
The issues covered include:
Where do you start and where do you go to find the information?
Practical recognition and treatment of the basic terms of distributable income, s95(1) income, income equalisation and income recharacterisation clauses, including TR 2012/D1 interpretation
Use of proportions, fractions or percentages rather than dollar amounts
What types of income can be streamed and how?
How to handle distributions through a chain of trusts
What happens if the ATO amends?
Use of resolution decision checklists and decision trees
Determining the eventual journal entries, general ledgers and accounts.
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.