When we talk about trust distributions, we always mention the possible assessment of the trustee. Especially when a trust distribution goes wrong, But what does that actually look like?
s99B ITAA 1936 is about foreign trusts paying accumulated income to Australian resident beneficiaries. Take away one of these elements, and you don't have a s99B issue.
From 2009 until October 2023, a UPE to a company was always a Div 7A issue. Not anymore. As Andrew Henshaw of Velocity Legal in Melbourne will tell you.
Hubspot for accountants - does that really work? Can Hubspot give us what we as accountants and tax agents need to run our practice?
Div 6E income is relevant when your trust income includes capital gains and/or franked distributions. Then Div 6E will avoid double taxation.
Trust Loss Allocation - Upton v Brown sets the scene. And then Cajkusic and Raftland confirm Upton v. Brown but very much limit its application.
Let's go to the very start and look at trust income. Because we need to understand trust income before we can talk about trust losses.
The theory around foreign trusts is confusing. So in this episode let's use a New Zealand trust as a foreign trust example.
Foreign trusts are not an issue per se. Nor are resident trusts. It really depends. But if you do have a foreign trust, watch out for s99B ITAA 1936. That is a really dangerous one.
An asset protection trust (aka equity split) does not give you 100% protection but it helps. Each layer you use increases your protection from creditors.
Asset protection layers can get pierced through. None is watertight. But the more layers you have, the more protected you are.
A reasonably arguable position - a so-called 'RAP' - is essential to protect you from penalties and interest around transfer pricing.
Which state law applies when you have people in different states? Do the DINs change anything? How do you check that a client matches the ID provided? All electronic signature questions you ever wanted to know you find in this episode.
Child support lump sum payments are often favoured by mothers and might improve the relationship between parents.
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