Published on 04 Aug 09
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
The Australian Taxation Office has recently commenced a wide ranging review into trusts with a particular focus on trust distribution minutes. This paper considers the steps that need to be taken by accountants and other tax professionals to minimise any exposures and prepare for audits in this area. Although this is a highly technical and difficult area, this paper focuses on practical solutions required to achieve the desired outcomes.
Topics covered include:
- tax net income and trust income debate: state of play following Bamford decision
- "flow through" of franking credits and streaming dividends, capital gains and ordinary income
- significant individuals under Small Business CGT Concessions: what practically is required?
- potential traps
- update on Commissioner's Practice Statement and discount capital gains
- what to look for in the trust deed and suggested tips for drafting trust distributions minutes.