ATO Attention Toward Trust Distributions

The ATO have recently issued a draft tax ruling in relation to Trust distributions and whether they are valid (s100A).

They are particularly focusing on:

-                      Distributions to beneficiaries that remain unpaid

-                      Distributions to grandparents and gifting

-                      Distributions to children and the payment of these entitlements

-                      Distributions to corporate beneficiaries

-                      Offsetting certain entitlements against other obligations

Again, we will be reaching out to those clients affected by these provisions.