The ATO advises that, in response to feedback, it has developed updated examples of the Annual trustee payment report in the TFN withholding for closely held trusts guide. These examples provide further clarity about what should be included at label S in the statement of distribution in the Trust tax return 2011.
Label S will need to be completed, if a client meets all of the following:
- they have made one or more distributions during the income year
- the distributions are wholly or partly from the ordinary or statutory income of the trust for the year
- the total of those distributions exceed the beneficiary's share of the net income of the trust.
Only include the excess of the distribution over the beneficiary's share of the net income of the trust at label S.