• H5 Credit for TFN amounts withheld from payments from closely held trusts

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    Show at H5 the total amount withheld from payments where the fund has not provided its TFN to the trustee of a closely held trust that is subject to the TFN withholding rules.

    The trustee of a closely held trust is required to withhold amounts from payments made to the fund if the fund did not provide a TFN. The rate of withholding is 49% (top rate plus Medicare levy) of the payments made.

    Where amounts have been withheld the trustee of a closely held trust is required to provide a beneficiary with a payment summary in the approved form. The credit amount claimed at H5 appears on the payment summary.

    Do not include at H5 amounts from any other withholding rules.

    If a credit is reported at H5 for tax withheld, the corresponding gross payment is included as a trust distribution at N to Q, item 10 (as applicable), unless it is non-arm’s length income of the fund in which case it is included at U Net non-arm's length income item 10.

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    About the TFN withholding rules for closely held trusts see TFN withholding for closely held trusts.

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    Last modified: 21 Aug 2015QC 44343