Unpaid Trust Distribution to Private Companies

To avoid any unpaid trust distribution being treated as a deemed dividend, call accountant Wen Wen for accurate advice on (02) 9871 3429. Serving Epping North Rocks, Parramatta, Sydney Hills - image

To avoid any unpaid trust distribution being treated as a deemed dividend, call accountant Wen Wen for accurate advice on (02) 9871 3429

Distributions made by trusts to private companies which remain unpaid at the end of the following year may be deemed to be a loan to the trust and become subject to Division 7A.

To avoid the unpaid distribution being treated as a deemed dividend, please see your accountant and tax advisor for options.

Trust Distribution and Resolutions

The ATO has reminded trustees who make beneficiaries entitled to trust income by way of a resolution that they must do so by the end of the year (i.e. 30 June). It said the resolution will determine who is to be assessed on the trust’s taxable income.

Call our tax agents and advisors now on (02) 9871 3429 to see how we may assist with your trust taxation planning.