Was the aggregate amount of your transactions or dealings with international related parties (including the value of any property/service transferred or the balance of any loans) greater than $1 million?
If the answer to this question is no, print X in the No box at W.
If the answer is yes, print X in the Yes box at W and complete section A of Schedule 25A 2010 together with any other relevant part of the schedule. Attach the completed schedule to the tax return. Print X in the Yes box at Have you attached any 'other attachments'? at the top of page 1 of the tax return.
However, if the trust was a subsidiary member of a consolidated group at any time during the income year and has completed Consolidated subsidiary member at Z2 item 2, you do not need to complete a Schedule 25A 2010.
The aggregate amount of the trust's transactions or dealings is the total amount of all dealings, whether on revenue or capital account (including property transfers or service provision), and includes the balance of any loans or borrowings outstanding with international related parties. Transactions must not be netted off against each other. Hence, a $600,000 purchase from and a $700,000 sale to related party should be treated as totalling $1,300,000 not $100,000.
International related parties are persons, including permanent establishments, who are parties to international dealings that can be subject to Division 13 of the ITAA 1936 or the business profits article or associated enterprises article of a relevant double tax agreement. The term includes the following:
- any overseas entity or person who participates directly or indirectly in the management, control or capital of the trust
- any overseas entity or person in respect of which the trust participated directly or indirectly in the management, control or capital
- any overseas entity or person in respect of which persons who participate directly or indirectly in its management, control or capital are the same persons who participate directly or indirectly in the management, control or capital of the trust
- a permanent establishment (PE) and its head office
- two PEs of the same person.
'Participates' includes a right of participation, the exercise of which is contingent on an agreed event occurring. 'Person' has the same meaning as in subsection 6 (1) of the ITAA 1936 and section 995-1 of the ITAA 1997.
For more information as to the relevant degree of participation, see Taxation Ruling IT 2514 Income tax: Company Schedule 25A: Information return for companies that transact business with related overseas entities.
The type of dealings or transactions will require the trust to complete part A of Schedule 25A 2010 are its dealings with related parties as above, such as an overseas holding company, overseas subsidiary, overseas PE of the entity, or non-resident trust in which the entity has an interest. These dealings or transactions may be the provision or receipt of services, or transactions in which money or property has been sent out of Australia, or received in Australia from an overseas source during the income year. They may include the transfer of tangible or intangible property, provision or receipt of services, or the provision or receipt of loans or financial services.
If money or property is not actually sent out of Australia or received in Australia, but accounting entries are made that have the effect of money or property being transferred, this is also to be taken as an international transaction.
Non-resident beneficiaries
Was any beneficiary who was not a resident of Australia at any time during the income year, 'presently entitled' to a share of the income of the trust?
If the answer to this question is no, print X in the No box at A. If the answer is yes, print X in the Yes box at A.
Ensure that the details of the beneficiaries and the assessable amounts of net income (except amounts covered by a withholding requirement) to which each beneficiary, who is a non-resident at the end of the income year, is presently entitled are entered under Non-resident beneficiary additional information in J and K at the bottom of item 65 Statement of distribution.
If a non-resident beneficiary is presently entitled to trust income, the trustee pays tax on that income. The trustee, at the time of distribution, deducts the tax payable and remits it to the Tax Office.
Attach a statement for each beneficiary who was a non-resident of Australia at any time during the income year, and who was presently entitled to income of the trust, showing:
- full details of any distribution to the beneficiary, including amounts of interest, royalties, franked dividends and unfranked dividends
- if a withholding amount has been paid and remitted to the Tax Office from the distribution, the amount of such distribution and the withholding amount paid
- name and residential address
- if any change occurred in the residency status of the beneficiary during the income year, details of when the beneficiary became or ceased to be a resident
- if from any distribution (other than interest, dividend or royalty income subject to non-resident withholding tax) made to the beneficiary, tax has been deducted and remitted to the Tax Office, the amount of the credit claimed for remittances made
- if it is contended that all or part of the non-resident beneficiary's share of the income included income of the trust derived outside Australia and while the beneficiary was not a resident
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- the beneficiary's share of that income
- the basis of the contention that the beneficiary is not a resident of Australia.
Also provide evidence that:
- where necessary, approval has been given for the transfer of amounts overseas
- if no amounts have been transferred overseas, the beneficiary's share of income has been applied for the benefit of the beneficiary or otherwise dealt with on behalf of the beneficiary
- the beneficiary has been notified of the entitlement.
Amount of tax spared foreign income tax offsets
Show at Q the amount of foreign income tax offsets relating to foreign tax forgone under an investment incentive provided by a foreign government, if the tax forgone is deemed to have been paid for the purpose of Australia's foreign income tax offset rules.
Transactions with specified countries
Did you send any funds or property to, or receive any funds or property from any of the countries listed below? This includes sending or receiving funds or property indirectly, for example, through another entity or country.
Do you have the ability to control the disposition of any funds, property, investments, or any other assets located in any of the countries listed below? This includes:
- funds or assets may be located elsewhere but are controlled or managed from one of the countries listed below, and
- where you have an expectation you are able to control the disposition of the funds or assets, or you have the capacity to control the disposition indirectly, for example, through associates.
Print X in the Yes box for yes or X in the No box for no at C.
The specified countries are as follows:
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Andorra |
Liberia |
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Anguilla |
Liechtenstein |
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Antigua and Barbuda |
Marshall Islands |
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Aruba |
Mauritius |
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Bahamas |
Monaco |
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Bahrain |
Montserrat |
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Belize |
Nauru |
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Bermuda |
Netherlands Antilles |
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British Virgin Islands |
Niue |
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Cayman Islands |
Panama |
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Cook Islands |
Samoa |
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Cyprus |
San Marino |
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Dominica |
Seychelles |
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Gibraltar |
St Kitts & Nevis |
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Grenada |
St Lucia |
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Guernsey |
St Vincent & the Grenadines |
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Isle of Man |
Turks & Caicos Islands |
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Jersey |
US Virgin Islands |
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Labuan (in Malaysia) |
Vanuatu |
Interest
Section 128FA exempt interest paid
Show at D the amount of any interest paid to non-residents that is exempt from interest withholding tax under section 128FA of the ITAA 1936. The interest withholding tax exemption is available in respect of interest paid by the trustee of an eligible unit trust on certain widely offered debentures and certain widely offered debt interests that are syndicated loans. The definition of eligible unit trust incorporates certain public unit trusts, corporate unit trusts and most public trading trusts. Unit trusts are also able to access the exemption if all their units are held by specified unit holders.
Interest to financial institution exempt from withholding under a double tax agreement (DTA)
Write at I the total amount of any interest paid to Finnish, French, Japanese, Norwegian, South African, United Kingdom and United States financial institutions that is exempt from withholding tax because of Article 11(3)(b) of a double tax agreement (DTA) with these countries.
DTA country
Complete Y if you have shown an amount at Interest to financial institution exempt from withholding under a DTA.
Print at Y the applicable three letter country code:
- USA if the exempt interest payments were to United States financial institutions
- GBR if the exempt interest payments were to United Kingdom financial institutions
- FIN if the exempt interest payments were to Finnish financial institutions
- NOR if the exempt interest payments were to Norwegian financial institutions
- FRA if the exempt interest payments were to French financial institutions
- ZAF if the exempt interest payments were to South African financial institutions
- JPN if the exempt interest payments were to Japanese financial institutions.
Print the code for the country where the most exempt interest was paid if payments were made to financial institutions in these countries.