Recorded Webinar: The War on Trusts - Understanding the ATOs Trust Taxation Focus Areas

The ATO’s war on trusts continues apace, with the taxation of family and discretionary trusts continuing to be a major source of audit activity. This session explores some of the recent legislative and administrative changes and how taxpayers can manage these, including:

• Extending anti-avoidance rules for circular trust distributions:

  • What situations would be covered?

  • What obligations are imposed?

  • When do the provisions apply?

• Areas of ATO audit activity:

  • Trustee reporting of beneficiary TFNs and withholding where no TFN reported

  • Reviews of family trust elections and interposed entity elections

  • Recharacterisation of trust income

• Risk mitigation strategies:

  • Reviewing and rectifying mistakes in test individual nominations

  • Ensuring efficacy of trust resolutions from trust law perspective