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ARTICLE · 01 AUGUST 2012

Action item for 31 July 2012: Trustees need to lodge TFN Reports

Hall & Wilcox
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If a trustee resolves at EOFY to distribute income to a new beneficiary, the TFN report must be lodged within 1 month.

AustraliaTax
Anthony Bradica
Anthony Bradica
Keith James
Keith James
Andrew O'Bryan
Andrew O'Bryan
Toniel Paton
Toniel Paton
Mark Payne
Mark Payne
Andrew Carter
Andrew Carter
Frank Hinoporos
Frank Hinoporos

If a trustee resolved at 30 June 2012 to distribute income to a beneficiary for the first time the TFN Reporting requirements will need to be satisfied by 31 July 2012. This is a two-minute summary of the key things you need to know to comply.

Overview

In 2010, provisions were introduced placing a tax withholding obligation on trustees of 'closely held trusts' distributing trust income to a beneficiary who has not provided their TFN to the trustee (TFN Withholding). The TFN Withholding is at the top marginal tax rate and gets attributed to the beneficiary, so some of it might be able to be clawed back when the beneficiary lodges their income tax return and knows what their actual tax rate is.

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