ATO issues EOFY checklist to trustees
The Tax Office has created a checklist to help trustees avoid basic trust errors with the 30 June deadline for trust resolutions approaching.
The ATO has issued an end-of-financial-year checklist to help trustees stay compliant and in control of their trust obligations.
The Tax Office said it was crucial that trustees and their advisers are clear about their obligations as the 30 June deadline for trust resolutions draws closer.
Understand how income is defined for the trust estate
The ATO said it is important that trustees are familiar with their trust deeds and accurately determine the income of the trust estate for each financial year.
“Common errors include actions that are inconsistent with the deed, mistaking accounting profit for distributable income, and misinterpreting trustee powers,” the Tax Office said.
To avoid these errors, trustees should review the trust deed and distribute income according to each beneficiary’s entitlements.
MTC.
