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  • 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

    28a Were you a beneficiary of a non-resident trust or did you have an interest in, or an entitlement to acquire an interest in, either the income or capital of a non-resident trust during 2019–20?

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

    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.

    To complete this question, work out whether one of the following applied during 2019–20:

    • you were a beneficiary of a non-resident trust estate
    • you had an interest in the income or capital of a non-resident trust estate
    • you had a right to acquire an interest in the income or capital of a non-resident trust estate.

    If any of the above were the case, answer Yes at A item 28a.

    28b Do any of the schedules within PCG 2017/1 apply to your offshore dealings?

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

    To complete this question:

    • identify all of your offshore dealings that are subject to any of the schedules within PCG 2017/1
    • add up the value of expenses and imports plus revenue and exports in connection with each Appendix 14 type of hub
    • determine the three Appendix 14 hub types that have the highest dollar value of property or services imported to or exported from Australia (the total value of expenses and imports plus revenue and exports)
    • in respect of the three Appendix 14 hub types that have the highest dollar value of property or services imported to or exported from Australia, add up the value of expenses and imports in connection with each type of hub according to the Appendix 14 type of hub
    • Add up the value of revenue and exports in connection with each type of hub according to the Appendix 14 type of hub.

    At B, E and H, write the Appendix 14 codes for the three hub types that have the highest dollar value of property or services imported to or exported from Australia (the total value of expenses and imports plus revenue and exports). Write these codes in descending order of total value.

    At C, F and I, write the total amount of expenses and imports in connection with each Appendix 14 hub type you have identified.

    At D, G and J, write the total amount of revenue and exports in connection with each Appendix 14 hub type you have identified.

    Question 29

    29a Were you a partner in a foreign hybrid limited partnership (FHLP) or a shareholder in a foreign hybrid company (FHC)?

    This question will help us to identify if there is a risk that income of a foreign hybrid limited partnership (FHLP) or a foreign hybrid company (FHC) has not been appropriately returned in Australia as an assessable distribution.

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

    FHLP has the same meaning as set out in section 830-10 of the ITAA 1997.

    FHC has the same meaning as set out in section 830-15 of the ITAA 1997.

    If you were a partner in a FHLP or a shareholder in a FHC, answer Yes at A item 29a and complete the following:

    • At B item 29a, write the number of FHLPs and FHCs in which you had an interest during 2019–20.
    • At C item 29a, write the total amount of your share(s) of net income or profit.

    Example 30

    ABC Co is an Australian resident taxpayer that is a partner in two foreign hybrid limited partnerships. It also holds shares in one foreign hybrid company.

    During the income year ABC Co had the following in respect of its interests in these entities.

    Entity

    Amount

    Share of net income from the BBB partnership

    $750,000

    Share of net income from the CCC partnership

    $100,000

    Distribution of profit from the XYZ LLC

    $275,000

    Total

    $1,025,000

    To complete this question ABC Co:

    • writes 3 at B item 29a
    • writes $1,025,000 at C item 29a.
    End of example
    Last modified: 28 May 2020QC 62599