Recorded Webinar: Are the ATO and Beneficiaries Putting a Blowtorch to Trustee Distribution Resolutions?

Trustee distribution resolutions seem to have been all about section 100A in recent times. However, this isn't the only piece of armoury in the ATO's weaponry to deem trustee distribution resolutions invalid, with the potential to invoke tax on the trustee at the highest marginal tax rate. Not to mention disgruntled beneficiaries who may not see eye to eye with the trustee's decision making. This session looks into the procedures and processes required to assist in ensuring a distribution resolution won't be shot down, including:

• Content in the trust deed to consider, including:
  • The "income of the trust estate" and "net income" (TR 2012/D1)
  • vesting date of the trust and any prospective trust beneficiaries
• Streaming of capital gains and franked distributions, including:
  • the time limit requirements
  • factoring in non assessable components (ie. 50% CGT discount, small business CGT concessions)
• Tips to avoid triggering family trust distribution tax
• Is a distribution from an asset revaluation reserve allowed and if so, how is it handled? (Fischer v Nemeske Pty Ltd [2016] HCA 11)
• Are trust resolutions valid when distributions are contingent upon certain events occurring? (Lewski v Commissioner of Taxation [2017] FCAFC 145)
• When validity of resolutions can be questioned if not all potential beneficiaries are properly considered? (Owies v JJE Nominees Pty Ltd [2022] VSCA 142)
• The impact of section 100A ITAA 1936
• Practical examples of effective processes and resolutions