More Section 100A Green Zone Examples
The ATO has released a paper with five additional examples which they propose to include in the green zone. The situations covered by these examples include where: a loss trust or company beneficiary(s) are presently entitled to trust income and those beneficiaries are members…
The ATO has released a paper with five additional examples which they propose to include in the green zone. The situations covered by these examples include where:
- a loss trust or company beneficiary(s) are presently entitled to trust income and those beneficiaries are members of the same family group (as defined in the tax law) as the distributing trust. Where there is a loss beneficiary(s), it must continue to be solvent, particularly if the loss beneficiary(s) use the trust entitlement to fund an equity distribution
- there is a time lag between when a beneficiary becomes entitled to trust income and that entitlement being satisfied – this is provided the lag does not exceed two years
- there is a testamentary trust that is maintained for the benefit of an individual where the trustee reinvests income to which the individual is presently entitled, and
- there is a business carried on by a trust where two generations of the same family manage that business.
Feedback is requested by 4 October 2022 and can be submitted by contacting Tax & Super Australia’s member services team on 03 8851 4555 9am - 5pm (AEST) Monday to Friday (excl. Public Holidays) or by emailing [email protected].
Read the full examples attached.
Example 1- Distributions involving a trustee undertaking a farming business
Example 2- Distributions to a loss company
Example 3- Time lag between a beneficiary becoming entitled and that entitlement being satisfied
Example 4- Time lag between a loss trustee beneficiary becoming entitled and that entitlement being satisfied
Example 5- Testamentary Trust
