Received a Distribution from a Non-Resident Trust? Better Get Your Documentation in Order

The taxing of a distribution from a non resident trust doesn’t necessarily follow the same path as a distribution from a resident trust. The differences may surprise you. This session delves into the workings of section 99B ITAA 1936, including:

• What amounts can section 99B catch that wouldn’t be caught if paid by a resident trust?
• What if the Australian resident receiving payment from a foreign trust was a non resident when the trust income was derived? (ATO ID 2011/93)
• How to support a genuine gift or loan (TA 2021/2)
• What if the payments received are the result of tax free CGT events by the foreign trust? (TD 2017/23 TD 2017/24)
• How are accumulated benefits applied for a beneficiary treated? (section 99C)
• How AUSTRAC reporting can initiate ATO activity
• What type of documentation should be maintained to counter section 99B (Campbell v Commissioner of Taxation [2019] AATA 2043)
• Practical examples