Reporting TFNs quoted to trusts for first time in 2012
Where the trustee of a ‘closely held trust’ (which includes a discretionary trust or family trust) makes a beneficiary 'presently entitled' to a share of trust income as at 30 June, unless an exclusion applies, the trustee is required to withhold an amount equal to 46.5% of their share of the trust’s net (taxable) income, unless the beneficiary has provided their tax file number (TFN) to the trustee of the trust before year-end.
Note: Exclusions are available for such entities as non-residents, deductible gift recipients, and beneficiaries who are under a legal disability for the purposes of the Tax Act, such as minors and bankrupts (as the trustee pays tax on their behalf).
However, if the beneficiary has provided their TFN for the first time in the 2012 financial year, the trustee is required to report the TFN to the ATO by the last day of the month following the end of the quarter in which the TFN was quoted. For example, if a TFN was quoted to a trustee in June 2012, it must be reported to the ATO in a TFN report by 31 July 2012.
The TFN reporting requirement can only be satisfied by reporting the TFN to the ATO within the appropriate timeframe, and on the approved form (either electronically or paper form).
Editor: If any distributions were made to new beneficiaries for the first time in the 2012 financial year, please let us know so we can assist you with lodging the TFN report.