If you have a trust as part of your business group, it’s absolutely paramount that the trustee resolution for the trust is prepared and signed ON OR BEFORE 30 JUNE 2021.
This sets out how the trustee (usually the business owner) will allocate the current year income to the beneficiaries of the trust.
In other words, it sets out who gets the income and this will impact what tax they will ultimately pay.
As trustee, how do you know who to distribute to and at what amount? The answer is by doing tax planning with your trusted business accountant.
𝐓𝐈𝐏 𝐎𝐅 𝐓𝐇𝐄 𝐃𝐀𝐘: Ensure the tax planning is done and the trust income is allocated to the appropriate family member by preparing a valid trustee resolution before 30 June.
If the resolution is not done, that most likely means that no one is entitled to the income and the trustee will pay 47% tax on the income. Yikes!
Like any tax advice make sure you get help for your specific situation.
𝐈𝐟 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐚 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐨𝐰𝐧𝐞𝐫 𝐚𝐧𝐝 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐨𝐯𝐞𝐫𝐰𝐡𝐞𝐥𝐦𝐞𝐝, 𝐈’𝐯𝐞 𝐠𝐨𝐭 𝐲𝐨𝐮𝐫 𝐛𝐚𝐜𝐤.
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