Withholding from a closely held trust beneficiary's payments or entitlements when they do not quote their TFN.
This information is for trustees and beneficiaries of closely held trusts, including family trusts.
Beneficiaries need to quote their tax file number (TFN) to the trustee to avoid having amounts withheld from their payments or unpaid entitlements.
If a beneficiary quotes their TFN, the trustee must tell us the TFN and other details of the beneficiary.
If a beneficiary doesn't quote their TFN before a payment or entitlement occurs, the trustee must withhold from the payment or entitlement, pay the withheld amount to us, and lodge an annual report with details of all withheld amounts.