13 Jan 10 Public ancillary funds breaching trust obligations
The ATO has advised that it has found that a number of public ancillary funds endorsed as deductible gift recipients (DGRs) are in breach of their trust deed. Common errors identified in ATO reviews include:
- distributions paid directly to entities located offshore
- benefits provided to non-DGRs located in Australia
- distributions to other ancillary funds.
For a copy of the ATO advice and more information, go here