This session provides practical guidance on making effective primary production trust distributions in the context of the Commissioner’s guidance on section 100A (PCG 2022/2 and TR 2022/4), Division 7A, the Guardian AIT Pty Ltd case and the BBlood case. Mark will review the background against which trust distributions will be made on a prospective basis and provide guidance as to strategies that may be employed to reduce the risk of non-compliance.
Topics covered included:
- A comprehensive review of historical authorities and a critical analysis of the Commissioner’s current position with respect to s 100A (PCG 2022/2 and TR 2022/4) and Division 7A and Part IVA in light of Guardian and Minerva
- Identifying key issues that need to be considered when making trust distributions to ensure compliance with the Commissioner’s guidance and reduce the risk of Australian Taxation Office inquiry; and
- Identifying potential impacts on the commercial activities carried on by trusts as a result of the Commissioner’s current position – Potential impacts may include a reduction in the amount of trust working capital or increasing the cost of working capital.