The tax issues created by unpaid trust distributions and how to manage them
Recorded 15 October 2020
Latest ATO guidance on expiring sub-trusts Options to prevent deemed dividends Checklist for releasing unpaid distributions
It is common in practice for trustees to appoint income to beneficiaries but leave some or all of these entitlements unpaid. While this delay in paying distributions is not necessarily a problem, there are a number of tax issues that need to be considered to ensure that adverse tax implications are not triggered.
This webinar guides practitioners through the different options available when dealing with unpaid trust distributions and how to best manage them.
Unpaid trust distributions cause some problems regardless of whether this is done for tax planning or a commercial decision to leave the money where it’s needed most. This webinar explores the issues that need to be considered and the practical steps that can be taken to minimise risk.
Options for preventing a deemed unfranked dividend from being triggered
Using normal Division 7A loan agreements to manage unpaid distributions
Step by step guide to putting a sub-trust arrangement in place
Options for dealing with expiring sub-trust arrangements
Anti-avoidance rules that need to be considered
Practical problems with leaving distributions unpaid
Things to check before unpaid distributions are released or transferred to someone else
Update on the proposed changes to Division 7A and how this impacts on unpaid distributions
Our Presenter
Michael Carruthers
Tax Director, Knowledge Shop
Michael oversees the development of the tax team for Knowledge Shop and Hayes Knight in Sydney and is head of the Hayes Knight group’s national tax committee.
Michael has a knack for seeing through the complexity and helping practitioners work through highly technical issues with certainty and accuracy
Michael is a member of the advisory panel for the Board of Taxation and is a member of the reference group for the Board’s review of small business concessions. He was also an expert panel member for the Board’s review of tax impediments facing small business.
Michael Carruthers
Tax Director, Knowledge Shop
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