Annual TFN withholding report

The Annual TFN withholding report is to be completed by the trustee of a closely held trust who has withheld amounts from payments to beneficiaries and who must report those amounts withheld to us.

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For more about your TFN withholding obligations for closely held trusts, including information regarding payments and distributions subject to the TFN withholding rules, refer to TFN withholding for closely held trusts.

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When to withhold

If you are the trustee of a closely held trust, you must withhold from a payment you make to a beneficiary if the beneficiary has not quoted their tax file number (TFN) to you by the time you make the payment.

A payment is either:

  • a distribution from the ordinary or statutory income of the trust
  • a beneficiary's share of the net income of a trust where they are presently entitled to a share of trust income.

A beneficiary's present entitlement to trust income is usually determined at the end of the trust's financial year.

Sections 12-175 and 12-180 of schedule 1 to the Taxation Administration Act 1953 define payments for the purpose of these rules.

How much to withhold

You are required to withhold at the top rate of tax from payments made to beneficiaries that have not quoted their TFN, refer to the applicable tax table for the rate.

Where beneficiaries can find their TFN

Your beneficiary can find their TFN on any recent notice of assessment or TFN advice from us. If they use a tax agent or accountant and they cannot find a recent notice of assessment or TFN advice, their tax agent or accountant may be able to assist them. Alternatively, they can contact us.

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Last modified: 05 May 2016QC 24408