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Question 27 Transfers to a non-resident trust

Last updated 7 February 2022

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, 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 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.

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.

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 A item 27 and complete the required fields:

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

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

Start of example

Example 29

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


Amount $

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


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


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


The taxpayer will complete question 27 as follows:

This image is an example of how to complete Question 27. Transfer 1 Label B Transfer amount: $60,000,000 Label C Appendix 8 exemption code: 1 Transfer 2 Label B Transfer amount: $28,000,000 Label C Appendix 8 exemption code: 5 Transfer 3 Label B Transfer amount: $12,000,000

End of example