This is an important notice that may require action for clients that have Discretionary or Family Trusts
The ATO has introduced new reporting requirements for Trusts and their intended beneficiaries.
The reporting requirements effect the addition of new beneficiaries or beneficiaries that were not listed in the 2010 trust tax return. Such new beneficiaries may include minors who have turned 18 during the last financial year.
If you intend to allocate trust income to a new beneficiary ie a beneficiary that was not included on your trusts 2010 tax return. You must lodge a TFN report by the 31st August 2011 naming all beneficiaries for the 2011 year. If the form is not lodged with the ATO the beneficiary will be subject to withholding tax at the maximum rate of tax if they receive a distribution in the 2011 year.
We also ask you to provide us with the details of all potential beneficiaries of your trusts that you plan to distribute to in the future years.
Information we require:
-The beneficiary’s TFN
-The beneficiary’s full name (individual or non-individual)
-The beneficiary’s postal address
-The beneficiary’s date of birth (if they are an individual)
For further information please read the FACT SHEET for trustees provided by the Australian Taxation Office.
Please contact your Client Manager if you have any further questions.