Successful audit activity by the ATO in relation to trusts is often the result of a particular tax treatment not complying with the terms of the trust deed. This session examines the following areas:

• The importance of understanding how trusts work
• Trustee power and control specific to the deed
• Particular clauses with tax implications:

• Defining income
• Distribution powers including streaming of capital gains and franked distributions
• Varying the trust deed

• Whether Guardian consent is required
• Are there circumstances where oral trustee distributions are ok?
• Various cases which highlight the importance of ensuring compliance with the deed (incl. Owies Family Trust [2020] VSC 716)