- helps Australian residents who have transferred, or are deemed to have transferred, property or services to a non-resident trust estate to
- determine whether, under the transferor trust measures, any income or capital gains derived by the trust estate should be attributed to them for inclusion in their assessable income
- work out the amount to be attributed.
- helps Australian beneficiaries who have received a distribution from a non-resident trust estate to determine whether it is assessable and whether an interest charge applies to the distribution.
Under the transferor trust measures, residents of Australia who have transferred property (including money) or services to a non-resident trust estate, are subject to accruals taxation on certain profits derived by the trust. The reference to transfer of property or services to a trust includes the transfer of property or services by way of creation of a trust.
Section 99B can assess amounts paid to, or applied to the benefit of, a resident beneficiary of a foreign trust estate; for example, it can apply to distributions out of accumulated foreign income or gains of the trust.
Related measures operate to impose an interest charge on certain trust distributions from non-resident trusts that are included in the assessable income of a resident beneficiary. Broadly, the interest charge applies if the profits of the trust from which the distribution was made were not subject to tax:
- in a listed country, or
- because of attribution under the transferor trust provisions.
See the Glossary at the start of this guide for the meaning of terms used in this chapter.
Are you subject to the transferor trust measures?
Application of section 99B, and the interest charge for beneficiaries of non-resident trust estates.