Recorded Webinar: Managing Distributions in Cross-Border Family Trusts: Strategy and Procedure

Increasing numbers of cross-border family trusts have led the ATO to intensified interest in distributions made by foreign trusts to Australian resident beneficiaries, and by Australian trusts to non-resident beneficiaries. This session explores various strategic tax issues that arise in this context, including:

• When is a distribution from a foreign trust taxable to the Australian beneficiary under s99B?

• The implications where a foreign trust distributes a foreign capital gain to Australian beneficiaries: TD 2017/23 TD 2017/24

• Re-characterisation of income as part of cross-border distribution:

  • Examples in practice

  • What kind of documentation is required??

  • What kinds of arrangements does the ATO target?

• Strategic options for managing distributions to non-residents

• Winding up non-resident trusts before becoming Australian resident

• Getting market value uplift from trust becoming resident before distribution