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.

1. Trusts
Updates from 2011
www.lovetts.com.au

2. Disclaimer
The information contained in this presentation is for guidance only and
should not be relied upon without obtaining professional advice having
regard to your direct circumstances. No responsibility for loss occasioned
directly or indirectly to any person acting or refraining from acting wholly or
partially upon or as a result of the material in this presentation or for any
error in or omission from this presentation can be accepted by the publisher
or any author, editor, contributor or consultant of any company referred to
herein.

3. Trust topics
• TFN withholding tax and TFN reporting
• Streaming of capital gains and franked
dividends

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. 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. Recommendations
Trusts
• 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. SAVE TAX, GROW BUSINESS, GENERATE
CASH FLOW, PLAN SUCCESSION & PROTECT
ASSETS
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