Trustee Declaration of Income
Trustees of discretionary trusts are required to make determinations regarding the distribution of the trust’s income prior to 30 June. If you are a trustee, please review the net profit of the trust prior to 30 June and document a determination regarding how this net income should be distributed. If you require assistance with this, please contact us.
Trusts continue to be under a great deal of scrutiny from the Tax Office particularly with regards to the income distribution decisions being made by Trustees. The task force established by the Tax Office in August 2013 continues to their risk review process. While the Tax Office has indicated that the task force will be focusing on higher risk taxpayers, increased audit activity in this area is likely. Accordingly, it is imperative you have the appropriate documentation in place.