• Question 28

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Complete by placing an 'X' in the applicable box. If you answer 'yes', you need to provide information about the three transfers to a non-resident trust estate with the highest dollar value.

    Do not include transfers performed for clients.

    You should answer 'no' to this question where the only transfers an entity makes that falls within this question involve:

    • the transfer of property or services to a public unit trust that is a non-resident trust estate, and
    • the sole purpose of the underlying transfer was the acquisition of units in the trust estate where the parties to the underlying transfer were at arms length.

    This is because Division 6AAA of the ITAA 1936 will apply to a public unit trust that is non-resident trust estate as defined in section 102AAB of the ITAA 1936 where subparagraph 102AAT(1)(a)(ii) of the ITAA 1936 is satisfied.

    To complete this question, you need to:

    • identify all the transfers of property or services you made/caused, in the last three income years, to a non-resident trust that is still in existence
    • work out the three transfer amounts with the highest dollar value.

    In the first column at C, E and G, provide the amount/value of the three transfers of the highest dollar value in descending order of total dollar value.

    In the second column at D, F and H, list the relevant exception code in respect of the transfer amount provided in the first column. For those transfers to which no exception code applies leave the relevant answer block blank.

    This question will help us to identify if there is a risk that income of a non-resident trust estate has not been appropriately returned in the assessable income of an Australian resident transferor.

    Unless otherwise specified, the terms used in this question have the same meaning as set out in Division 6 and 6AAA of the ITAA 1936.

    The terms 'transfer', 'property' and 'services' are defined in section 102AAB of the ITAA 1936. Sections 102AAJ and 102AAK of the ITAA 1936 provide guidance in relation to whether there was a transfer or a deemed transfer of property or services to a non-resident trust estate.

    Further Information

    For a list of the relevant exceptions and codes, see Appendix 9.

    End of further information

    Example

    During the last three income years, an Australian resident taxpayer makes the following transfers to a non-resident trust that is still in existence.

    Transfer

    Amount

    Transfer of property made to the ABC discretionary trust (resident in Canada) for no consideration (not arm's length)

    12,000,000

    Transfer made to the AAA discretionary trust for the arm's length acquisition of materials to be used in the taxpayer's business.

    60,000,000

    Transfer of cash made to the XYZ Public Unit Trust for the sole purpose of acquiring units in that trust.

    28,000,000

    The taxpayer will complete question 28 as follows.

    Example of question 28 completed

    Last modified: 09 Nov 2011QC 24292