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The ATO has advised that as part of its examination of the compliance risks associated with partnership and trust distributions, it is reviewing distributions from partnerships and trusts to the respective partner and beneficiary returns for the years ended 30 June 2004 to 30 June 2007 to ensure that distributions have been correctly disclosed. Letters have been sent to certain agents listing clients whose partnership or trust income distributions either have not been disclosed or have been understated in income tax returns.

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