On 18 Dec 2017, the ATO posted an article drawing attention to its recently released draft Tax Ruling on vesting trusts: TR 2017/D10 (see related Tax Month article). It advises as follows.
What happens to a trust on vesting will depend on the requirements set out in your client’s trust deed. Broadly, beneficiary interests in the property of the trust become fixed.
Each trust deed has its own vesting date and vesting terms, so advise your clients:
- to read their deed carefully to know when their trust will vest and what is required on vesting
- they can’t change the vesting date after it has passed
- if their trust’s vesting date has passed, or if they have questions about the tax consequences of their trust vesting, they can contact us for advice.
It also asks for feedback from taxpayers and professionals, on:
- issues facing trustees and beneficiaries of trusts that have vested. You can provide your feedback by visiting Let’s Talk – Trust vesting administrative approachExternal Link
- Draft Taxation Ruling TR 2017/D10 Income tax: Trust vesting – amending the vesting date and consequences of a trust vesting.
See also:
[ATO website: posted article; FJM; LTN 243, 19/12/17; Tax Month Dec 2017]