In February 2022, the Australian Taxation Office (ATO) released the following draft public guidance products on family trust distributions pursuant to Section 100A and Division 7A of the Income Tax Assessment Act 1936 (Cth):
- Draft Taxation Ruling TR 2022/D1 Income tax: section 100A reimbursement agreements
- PCG 2022/D1Draft Practical Compliance Guideline PCG 2022/D1 Section 100A reimbursement agreements - ATO compliance approach
- TD 2022/1 Income tax: Division 7A: when will an unpaid present entitlement or amount held on sub-trust become the provision of 'financial accommodation'?
The ATO also released Taxpayer Alert TA 2022/1 which signals the ATO’s concerns with parents benefitting from the trust entitlements of their children who are over 18 years old.
We have prepared the following resources to help you and your clients to identify and address issues arising from the draft guidance.
Please note that:
- The ATO guidance is currently in draft format and may be subject to change
- This information is current as at 3 May 2022 and will be updated when the ATO guidance is finalised
- Each individual situation will depend on the facts and circumstances of the arrangement
- The guidance supplied is not a substitute for legal advice.
External ATO resources:
Family trust distributions – what accountants need to consider
An ATO guidance package clarifies client trust dealingsarticle
- Taxation law
ATO modifies its stance on access to deceased's taxes
The ATO amends a change it initiated about disclosing a deceased person’s pre-death tax affairs.
ATO’s data matching ramps up and focuses on SME reporting
Here’s how to ensure your clients are correctly accounting for their income and use of assets.article
TPB review: What it means for tax practitioners
The final report of the Review of the TPB has many noteworthy recommendations but more consultation is needed on implementation.article
Taxation Centre of Excellence
Providing our members with an opportunity to advise on key taxation policy issues
- Taxation law
APES 220 Taxation Services
This overview is not a replacement of the standard and therefore should be used in conjunction with, and not instead of, the standard