Gross distributions from trusts may contain unfranked dividends, franked dividends, franking credits attached to these dividends, and other assessable distributions. Write the different components of distributions from trusts at N to Q.
If the distribution includes an amount of foreign income, including New Zealand dividends and supplementary dividends, include that portion of the distribution at D1 Gross foreign income and take it into account in calculating D Net foreign income.
Include any amounts subject to foreign resident withholding that were distributed to the fund from a trust. Also include the fund's share of credit from foreign resident withholding. A credit can be claimed for the fund's share of credit from foreign resident withholding in the calculation statement at F2 Credit: foreign resident withholding item 12.
All income received from stapled securities should be returned as trust distributions at N to Q, including the different components at the appropriate labels (see below).
This amount cannot be a loss.
Consider whether any distributions received from a trust are part of a non-arm's length arrangement and whether the distribution received is greater than what might otherwise have been expected had the parties been dealing with each other at arm's length. See Taxation Ruling TR 2006/7 for further information. If the distributions received are not at arm's length, do not include the distribution at N to Q. Include these distributions at U Net non-arm's length income.
Do not include capital gains received from a trust at Q Trust distributions other amounts. Include them at A Net capital gain. For information on how to include a capital gain received from a trust at A, for example, how to gross up a capital gain for a trust distribution, see Guide to capital gains tax 2008.
Do not include distributions from PSTs at N to Q.
If FTDT has been paid on income or capital of a trust to which the fund is presently entitled or which has been distributed to the fund, exclude that income or capital from the assessable income of the fund (under section 271-105 of Schedule 2F to the ITAA 1936).
If UBNT has been paid on a share of the net income of a closely held trust to which another trust is presently entitled, that income attributable to the UBNT to which the fund is presently entitled or which has been distributed to the fund is excluded from the assessable income of the fund (under sections 102UK and 102UM of the ITAA 1936).
Losses and outgoings incurred in deriving an amount that is excluded from assessable income under section 271-105 of Schedule 2F to the ITAA 1936, or section 102UK or 102UM of the ITAA 1936, are not deductible. A tax offset cannot be claimed by the fund for any franking credit attributable to the whole or part of a dividend that is exempt income under section 271-105 of Schedule 2F to the ITAA 1936, or section 102UK or 102UM of the ITAA 1936.