• Trustee beneficiary non-disclosure tax payment advice

    The Trustee beneficiary non-disclosure tax payment advice form (NAT 72967) is to be completed by the trustee of a closely held trust to advise the ATO of the amount of trustee beneficiary non-disclosure tax (TBNT) the trustee is liable to pay and to allow them to pay the TBNT.

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    Download the Trustee beneficiary non-disclosure tax payment advice (PDF, 220KB).

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    When are you liable for TBNT?

    You are liable for TBNT if you are the trustee of a closely held trust and either of the following applies:

    • you do not make and send us a correct trustee beneficiary statement (TB statement) reporting an untaxed part of a share of the net income of the trust that has been included in the assessable income of a trustee beneficiary by the due date for lodgment of the trust’s income tax return
    • you become entitled to all or part of a share of net income that has been included in the assessable income of a trustee beneficiary of the trust – this is sometimes known as a ‘round robin’ or ‘circular distribution’.

    How do you calculate the TBNT?

    Step 1: Work out any share of net income of the trust that has:

    • been included in the assessable income of a trustee beneficiary during the income year
    • not been reported to us in a correct TB statement.

    Step 2: Work out any share of net income to which you are entitled that has been included in the assessable income of a trustee beneficiary (circular distribution) and has not been included in the amount at step 1.

    Step 3: Add the amount at step 1 to the amount at step 2 and show the result at label A. This is the untaxed part of shares of net income subject to TBNT.

    Step 4: Multiply the amount at label A by rate of tax (refer to rate of tax table on TBNT form) and show this amount at label B.

    Step 5: Work out any tax offsets to which you would be entitled had you been assessed and liable to pay tax under Section 99A of ITAA 1936 on the untaxed part of shares of net income shown at label A. This is known as the notional tax offset. Show this amount at label C.

    Step 6: Subtract the amount at label C from the amount at label B and show the result at label D. This is the amount of TBNT you must pay.

    Last modified: 15 Dec 2014QC 22076