eWombat Search

Latest Accounting News
Hot Issues
In case you missed it – The company tax Bill that did pass Parliament.
GST spotlight headed to smaller end of town
Superannuation Amnesty – Maybe! Maybe Not!
ATO drills in car-sharing focus this tax time
What is Bankruptcy?
Update of Australia's vital statistics
ATO speaks on risk factors, surveillance triggers for FY19
ATO’s corporate residency guidance cops backlash
ATO dispels top tax time myths to clients as clampdown rolls out
Tools for budgeting, cash flow, Super and more ….
Guidance for SMSFs on transfer balance reporting
ATO issues alert on super, tax scams
Salary sacrifice integrity
Understanding the evolution of blockchain and cryptocurrencies
Update to Australia's vital statistics
Tax Time Checklists- Individual, Company, Trust, Partnership and Super Funds
SMSFs - Our 'hardest' jobs
Tax Office reveals adventurous, dubious claims ahead of tax time
ATO reveals top tax time mistakes, set to contact 1 million taxpayers
Watch out for charges with incoming GST laws.
Super savings gap for women stuck at 30%
‘Wipe the slate clean’: Clients, accountants urged to use new amnesty period
Statistics for all Australians
Touch Payroll (STP)
Articles archive
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 4 of 2014
Articles
FBT – Christmas Parties and Taxi Fares
Hiring older employees
Deadline - 19th December 2014
Traps in Making Family Trust Distributions
Data matching offshore bank accounts
Estate planning in an SMSF.
Maximising the benefit of Credit Cards
Warning on Bank Offset Accounts
Mining tax gone but watch for associated tax changes
Traps in Making Family Trust Distributions

 

Taxpayers and tax agents need to work closely together to avoid trust distribution problems.


     

Some examples are:-    


Who are the beneficiaries?


Is the proposed beneficiary really a beneficiary?  What does the trust deed say?  Check out who the excluded beneficiaries are.  Has anyone renounced or disclaimed their beneficial interest?  Has anyone been removed as a beneficiary?


Is the information correct?


If they are not named in the trust deed as a beneficiary, then consider whether they have been subsequently nominated.  Any trust documents are relevant from the beginning of the trust.  Has the deed been varied?  Has the definition of income been varied?


Vesting dates


A distribution might be made by one trust to another trust.  If that vesting date is more than 80 years after the date of commencement of the distributing trust, then the distribution is void.


What is income?


When there are differences between the trust income and taxable income, there may be an unexpected tax outcome.


Make sure you can rely on the trust’s tax returns and financial reports and that they are being prepared by a competent accountant.


Default beneficiaries exist?


If a resolution fails, any income or capital gain is distributed to the default beneficiaries (in the deed) and this will avoid the trustee being assessed on the income or capital against at the top marginal rate.  Are the resolutions so contingent that there is uncertainty – hence ineffective?


 


AcctWeb




7th-November-2014
 

Stapleton Group: 83a Boronia Road Boronia VIC 3155 | Phone: (03) 9760 7800 | Fax: (03) 9760 7860