June 2015 Edition

In this edition:

Welcome

Business Taxpayers

Company Considerations

Trust Considerations

SMSF and Superannuation

Trust Considerations

Preparing a trust for the end of the financial year

• Taxpayers should review trust deeds to determine how trust income is defined. This may have an impact on the trustee's tax planning.
• Trustees should consider whether a family trust election (FTE) is required to ensure that any losses or bad debts incurred by the trust will be deductible and to ensure that franking credits will be available to beneficiaries.
• Taxpayers should avoid retaining income in a trust because it may be taxed in the hands of the trustee at the top marginal tax rate. To avoid this, trustees should ensure that effective trust resolutions are made before 30 June to distribute the income of the trust.

If you have any questions about preparing a trust for the end of the financial year, please contact the team at Goodwin Chivas & Co.