Section 99B and Non-Resident Trusts
Overview
The ATO’s new draft guidance on s 99B of the ITAA 1936 reveals surprising tax risks for beneficiaries of non-resident family trusts, including gifts, loans, and even using trust assets. This session will highlight these potential traps.
Recent draft guidance from the ATO on the wide application of s 99B of the ITAA 1936 will likely startle many tax practitioners. If a taxpayer is a beneficiary of a non-resident family trust then a gift from another family member could generate tax exposure. Similarly, loans to the beneficiary via interposed entities where the source of the funds can be traced to the trust are also caught. Even the mere use of a trust asset creates tax risk.
Section 99B of the ITAA 1936 includes certain trust distributions in the assessable income of a resident beneficiary to the extent that the amount has not previously been subject to tax. Although the provision was directed at untaxed accumulated foreign source income the section is broadly drafted and potentially has a much wider application. So much has been confirmed by the draft guidance issued by the ATO on 31 July.
Given the growth of the global citizen, and with a third of Australians now born overseas, the section is increasingly relevant and, indeed, relied upon by the ATO. This session will:
- detail the background to the provision and caselaw,
- dissect the recent draft guidance, and
- identify the (often startling) circumstances where the section should be considered, illustrated with case studies
Learning Outcomes:
Attendee expect to learn:
- Background to s99B
- Caselaw and interpretation of the section
- Content of the draft ATO guidance
- Case studies illustrating the application of s 99B
- Low risk scenarios
- The records needed to establish an exception
- Potential traps to watch out for
Suited to:
Practitioners with clients who are beneficiaries of non-resident trusts and beneficiaries themselves.
This On Demand Includes:
- Recording of the Live Webinar, which can be viewed multiple times
- PowerPoint Presentation
- Verbatim Transcript, with Searchability
- Supporting Documentation
- CPD Quiz
- CPD Certificate
Course syllabus
3 lessons
- Video – Section 99B and Non-Resident TrustsVideo
- Feedback Survey 2024Survey
- Knowledge QuizTest
Your presenter
Justin Dabner’sTax Resolutions
formal qualifications include a PhD and a Bachelor of Commerce and Law (with Honours). He is a qualified solicitor (non-practicing), registered tax agent and chartered tax adviser. He was formerly the National Tax Director for both Deloittes and Ernst and Young and Associate Professor with the Law School at James Cook University.
Justin has in excess of 37 years of experience in tax consulting and education. The author of many hundreds of publications and presentations Justin is a regular contributor to CCH Tax Week and an author for Thomson Reuters Tax Commentary. Justin can call upon his professional experiences overseas and in Australian capital cities and regional environments in law, accounting and academia.