Streaming Of Trust Distributions

Date: 08/03/2011

Recent court cases, and a current Government review, may well lead to changes in the way trust distributions are treated for tax purposes - stay tuned.

In an effort to reduce taxpayer uncertainty over the treatment of trust distributions and the streaming of income to beneficiaries, the Assistant Treasurer is conducting a review, while the Tax Office is considering the implications of recent significant court cases. Alexis Kokkinos, of Pitcher Partners Advisors, says draft ATO rulings and some of the results of the review will be known before June 30 this year, and could have an immediate impact on the taxation of trust distributions. He advises taxpayers and their financial advisers to be on the lookout.