The trustee beneficiary rules were contained in Tax Laws Amendment (2007 Measures No. 4) Act 2007 which amended the reporting obligations for trustees of closely held trusts.
The purpose of these rules is to ensure that the trustee of a closely held trust with one or more trustee beneficiaries that are presently entitled to a share of the income and/or a tax preferred amount of the trust, advises the Commissioner of Taxation (Commissioner) soon after the end of the year of income of certain details about those trustee beneficiaries.
The new rules will allow the Commissioner to check whether:
the assessable income of the trustee beneficiaries includes the correct share of net income
the net assets of the trustee beneficiaries reflect the receipt of the tax-preferred amounts.
These rules replace the ultimate beneficiary rules that required trustees of closely held trusts to report to the Commissioner certain details about the trust’s ultimate beneficiaries.
Subscribe
