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Trustees face a number of complicated tax issues when distributing trust income. The risk is heightened because trust dealings are always within the ATO's audit targets. Are you aware of the key issues that arise for trusts and what is currently attracting the ATO's attention?

One significant and recent theme is the focus on specific anti-avoidance provisions like section 100A. The ATO's compliance approach in respect of the application of section 100A to distributions of trust income from a family trust to members in that family is set out in the finalised ATO guidelines PCG 2022/2.

However, apart from 100A, trustees also need to consider a number of tax issues when distributing trust income each year – for example, any differences between trust income and taxable income, beneficiaries on-lending to the trust, non-resident and temporary resident beneficiaries receiving capital gains and whether any previous year losses can be used to reduce the net income of the trust.

We are running a webinar to work through case studies to help clients and advisers identify the current tax risks for their trusts. After this webinar, you will be able to identify:

• what changed between the ATO's draft rulings on section 100A and the final versions
• when distributions of income from trusts to entities on lower tax rates can be a reimbursement agreement under section 100A
• when arrangements may fall within the scope of an ordinary family or commercial dealing
• how to distribute capital gains to non-resident and temporary resident beneficiaries
• issues for trustees when distributing trust income, including resettlement considerations, differences between trust income and taxable income and applying previous year losses.

We hope you can join us.