Trusts updates. nov dec 2011

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Andrew Lovett brings updates on trusts in plain English. TFN withholding and reporting, streaming of capital gains and franked dividends, rules getting tougher on trusts.

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Trusts updates. nov dec 2011

  1. 1. TrustsUpdates from 2011 www.lovetts.com.au
  2. 2. DisclaimerThe information contained in this presentation is for guidance only andshould not be relied upon without obtaining professional advice havingregard to your direct circumstances. No responsibility for loss occasioneddirectly or indirectly to any person acting or refraining from acting wholly orpartially upon or as a result of the material in this presentation or for anyerror in or omission from this presentation can be accepted by the publisheror any author, editor, contributor or consultant of any company referred toherein.
  3. 3. Trust topics• TFN withholding tax and TFN reporting• Streaming of capital gains and franked dividends
  4. 4. TFN withholding and TFN reporting• Trustee obliged to request TFN and personal data before paying distribution• Trustee obliged to withhold tax where distribution paid and beneficiary not quoted TFN and personal data• Trustee obliged to lodge TFN report by 28 July, Jan, April or July (similar to date for super contributions)• Quarterly reporting requirements started this year
  5. 5. Streaming of capital gains and franked dividends• Changed rushed through – royal assent 29 June• Streaming where a trust divides its income into components (dividends, capital gains, foreign income etc) and distributes most tax effectively• e.g. Individuals receiving capital gains and accessing 50% discount• Change purportedly to help taxpayers?• Cases that cast doubt on streaming – ATO interpretation• Applies to capital gains and franked dividends• Requires beneficiaries specific entitlement to be recorded in minutes by certain dates – effectively distribution minutes need to be done by 30 June
  6. 6. RecommendationsTrusts• Have your tax agent report TFN and details to Tax Office• Distribution minutes done by 30 June particularly for capital gains• Investment agreements and sub-trusts in place for company distribution entitlements
  7. 7. SAVE TAX, GROW BUSINESS, GENERATECASH FLOW, PLAN SUCCESSION & PROTECT ASSETS www.lovetts.com.au facebook.com/pages/Lovetts/191722257531010 twitter.com/AndrewLovett linkedin.com/company/Lovetts andrewlovett.tumblr.com

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