Recorded Webinar: Trust Distributions: Timing and Content

The importance of correctly documenting a trust’s distribution of income and/or capital cannot be overstated. Getting it wrong can trigger tax to the trustee at the top marginal rate, with no entitlement to the CGT 50% discount concessions. This session looks at the timing requirements and issues to consider when making a trustee distribution resolution to assist in ensuring the desired tax outcomes are achieved, including:

• Tax effective timing deadlines
• Trust deed definitions of trust income
• Family trust elections, interposed entity elections and family group considerations
• Tax effective streaming of franked dividends and capital gains
• Distributions that include the small business CGT concessions, including:

• monitoring the significant individual test and small business participation percentage
• treatment of the non assessable portion of a capital gain to achieve the desired tax outcome

• Trust loss rules and the pattern of distribution test
• Why trustee resolutions can fail (Lewski v Commissioner of Taxation [2017] FCAFC 145 TD 2012/22 (update in progress))
• Practical examples