Unpaid Trust Distribution to Private Companies
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.