IMPORTANT INFORMATION FOR TRUSTEES OF TRUSTS
*** TRUST RESOLUTIONS MUST BE MADE BY 30TH JUNE 2019***
The Tax Office has advised that trustees must record their intention to distribute the net income of the Trust to its beneficiaries on or before the 30th June 2019.
No set format is required for the minute and as the exact income is not known by 30th June the resolution can be done either in percentage terms or set dollar amounts or a combination of both.
This minute must show:-
- To whom the net income of the trust has been distributed and
- In what proportion
If this is not done the ATO will not accept that the trust has made an effective distribution of income and the trustee may be liable for tax on trust income at the rate of 45%.
Please be mindful that any distribution made must be in accordance with the terms of the Trust Deed. You should have a complete copy of your current trust deed and be familiar with the provisions dealing with distributions of income to beneficiaries.
If your Trust has income from franked dividends and / or capital gains, you may be able to "stream" this income to a specific beneficiary (s). In some cases this may be advantageous for tax purposes. If you think this is relevant to your circumstances, please contact us to discuss. If this does not apply to you, you only need to complete names of beneficiaries and amounts or percentages in the last column.
CLICK HERE>> for Template resolutions
CLICK HERE>> for Template resolutions EXAMPLE
A copy of the resolution must be included with the documentation you provide to us for the preparation of your trust tax return.
Please contact us if you require assistance in drafting a resolution for your trust/s.