By taxconnect on
Thursday, June 30, 2011
An important announcement from the Australian Taxation Office (ATO). The announcement concerns the administrative treatment that the ATO will be adopting for trustees that intend to stream franked distributions to certain beneficiaries for the 2011 income year (in accordance with the new rules contained in Tax Laws Amendment (2011 Measures No. 5 ) Act which received Royal Assent on 29 June 2011).
The ATO will not be selecting cases for review or audit in respect of the 2011 income year for the sole purpose of determining whether the purported streaming of capital gains or franked distributions by a trustee is effective. However, the ATO will be taking compliance action in cases where there has been a deliberate attempt to exploit weaknesses or deficiencies in the law.