Live Webinar: Would Your Trust Distribution Resolutions Stand Up to Closer Scrutiny?

You don't need to be told that the taxing of trusts is a hot topic in the tax profession at the moment, and that the ATO is increasingly active with reviews and audits in this space. And the one document that can have such a major bearing on the outcome of any such review or audit, is the content included in the trustee distribution resolution. This session looks into the consequences this document can trigger if it is subject to closer scrutiny, including:

• Why care needs to be taken to ensure the trustee distribution resolution isn't prepared in an off-the-shelf pro forma manner
• Tax consequences if:
  • deadlines for making trustee distribution resolutions are not met
  • ATO reviews and audits find fault with the resolutions
• Why the 31st August deadline for “specifically entitled” capital gains may not apply if part of the gains form part of “income of the trust estate”
• Issues that can arise if the decision making behind the distribution is solely based on the marginal tax rates of the potential beneficiaries
• Issues to consider if beneficiaries presently entitled to the distribution of trust income don’t receive the distribution
• How trustee distribution resolutions can cause adverse tax consequences when family trust and interposed entity elections have been made
• Practical examples of trustee distribution resolutions that may or may not stand up to closer ATO scrutiny, including:
  • distributing capital gains that include 50% discount and 50% active asset reductions
  • the streaming of franked dividends
  • wording used in the resolution regarding income and capital distributions when compared to a trust deed’s requirements