26 Oct 09 Consultation on extending TFN withholding arrangements to certain trusts
In a media release issued on 22 October 2009, the Assistant Treasurer, Senator Nick Sherry, announced the release of a discussion paper on the Government's 2009-10 Budget measure to extend the TFN withholding arrangements to closely held trusts, including family trusts.
The TFN system is designed to detect the non-disclosure of income and to enable the ATO to match the details of income disclosed in a taxpayer's return with details it receives from other sources. In the 2009-10 Budget, the Government announced important changes to ensure that assessable distributions to beneficiaries of closely held trusts, which include family and related trusts, align with the amounts included by these beneficiaries in their tax returns.
"The measure applies from 1 July 2010 and it is estimated to raise $150 million over the forward estimates," the Minister said.
Submissions on the discussion paper are due with Treasury by 20 November 2009.
For a copy of the Minister's media release, No 2009/079, 22 October 2009, go here
For a copy of the discussion paper, go here