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  • Question 27

    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

    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.

    The dollar amounts or values asked for in this question are all based on your accounting records.

    If you answer 'Yes', you need to provide information about the three transfers to a non-resident trust estate with the highest dollar value.

    You should answer 'No' to this question where the only transfers an entity makes that falls within this question involve both of the following:

    • the transfer of property or services to a public unit trust that is a non-resident trust estate
    • 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 arm's 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.

    Transfers performed for your clients are not included in this question.

    Unless otherwise specified, the terms used in this question have the same meaning as set out in Divisions 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 whether there was a transfer or a deemed transfer of property or services to a non-resident trust estate for the purpose of Division 6AAA.

    If, during the last three income years including the current one, you have directly or indirectly transferred property, money or services to a non-resident trust, where that non-resident trust was still in existence during the income year, answer 'Yes' at label A of question 27 and complete the required fields:

    • At item 27, label B, write the amount/value of the three transfers of the highest dollar value in descending order of total dollar value.
    • At item 27, label C, write the relevant Appendix 8 exemption code in respect of the transfer amount written at label B of the same row. For those transfers to which no exemption code applies leave the corresponding label C blank.
    Further Information

    For the list of the transferor trust exemption codes, see Appendix 8.

    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 27 as follows:

    The taxpayer completes question 27

    Last modified: 08 Aug 2014QC 26054