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MaxFactorAU(Devotee)Registered Tax Professional
23 Feb 2023

Hi guys,


I have a question, maybe a bit simple, but cant answer anywhere.


Lets say, in 2019 Trust had nobody presently entitled for the Income. Trustee paid s 99A rates tax. The undistributed amount (after tax was paid) formed a corpus of the Trust and was left on the Trust's bank account till 2022. In 2022 trustee distributes the corpus to the Beneficiary A.


The question is:

in the personal tax return of the Beneficiary A for 2022, do we include this income in Item 13? If yes, do we include the net amount they received on their bank account (hopefully not), OR we include Gross amount (including tax paid by the trustee) and then we claim tax paid back in Item 13, Label S?


Thank you.

2,032 views
5 replies
2,032 views
5 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
7 Mar 2023

Hi @MaxFactorAU,


We've heard back from our technical team.


Based on the instructions for the 2022 Supplementary tax return for individuals, Item 13 is in relation to income from a trust and a credit for amounts of tax paid or amounts withheld from trust income. In your scenario, the distribution to Beneficiary A was from the corpus of the Trust and not income of the Trust. As the distribution was from the corpus of the Trust, the distribution to Beneficiary A is not shown at Item 13. As such, there is no credit from trust income to be shown at Item 13.


As trusts can be complex in nature and influenced by your individual facts and circumstances, we recommend seeking advice specific to your circumstances through tailored technical assistance.

All replies

AriATO(Community Support)Community Support
26 Feb 2023

Hi @MaxFactorAU


You report the net income received from the trust. If tax has been paid you should check with the trustee if these amounts should be declared. You might find our myTax info about trusts helpful.

MaxFactorAU(Devotee)Registered Tax Professional
27 Feb 2023

Thank you @AriATO,


I don't think the trustee has a tax agent licence to give such advice to the beneficiary.


Unforunately, I could not find any information in the link you supplied. Can you guide me to more specific page, where I can read how beneficairy has to declare received distribution (particuraly, the situation when the tax has already been paid by the trsutee).


Thank you 🙂

Most helpful reply

AriATO(Community Support)Community Support
7 Mar 2023

Hi @MaxFactorAU,


We've heard back from our technical team.


Based on the instructions for the 2022 Supplementary tax return for individuals, Item 13 is in relation to income from a trust and a credit for amounts of tax paid or amounts withheld from trust income. In your scenario, the distribution to Beneficiary A was from the corpus of the Trust and not income of the Trust. As the distribution was from the corpus of the Trust, the distribution to Beneficiary A is not shown at Item 13. As such, there is no credit from trust income to be shown at Item 13.


As trusts can be complex in nature and influenced by your individual facts and circumstances, we recommend seeking advice specific to your circumstances through tailored technical assistance.

Liked by MaxFactorAU
MaxFactorAU(Devotee)Registered Tax Professional
9 Mar 2023

Hi @AriATO,


thank you very much. 🙂That is I thought would be the case. No income to be declared, because the highest rate has been paid. I understand that we have to read Trust Deeds carefully because trust law is complex and corpus distributions are subject to the CGT events, section 99B and the specific entitlement rules in Subdivision 115-C of the ITAA1997.


I just wanted to know in general.


Thanks a lot again 🙏

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