01/07/2003 - 22:00

New rules for trusts

01/07/2003 - 22:00

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THE Federal Government has announced long-awaited provisions relating to distributions from trusts to companies.

The new provisions will replace section 109UB of the Income Tax Assessment Act and are designed to improve the effectiveness and fairness of the deemed dividend rules contained in Division 7A.

CPA Australia said the announcement was welcome news for those who fall within the types of exemptions outlined.

However it is waiting on more clear guidance for other types of payments not specifically mentioned in the Treasurer’s media release.

Accounting firm PKF said the new rules should fix current problems for both taxpayers and the Government.

It said many trustees have been inadvertently making loans to beneficiaries without realising the beneficiaries would be taxed on the loan.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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