We’ve published a draft taxation determination (TD) and draft practical compliance guideline (PCG) on section 99B of the Income Tax Assessment Act 1936. Section 99B should be considered where a resident beneficiary receives a payment or benefit from a non-resident trust.
Through this guidance, we aim to provide certainty about the application of section 99B, and to make it easier for resident beneficiaries and their advisers to understand and comply with their tax obligations.
PCG 2024/D1 aims to provide guidance and certainty on:
- common scenarios where section 99B should be considered
- practical aspects of record-keeping evidencing that an exception in subsection 99B(2) applies
- our compliance approach for non-resident deceased estates and the use of a
- non-resident trust’s property.
TD 2024/D2 clarifies our view on the hypothetical taxpayer tests in subsection 99B(2), in particular:
- characteristics of the hypothetical resident taxpayer
- characteristics of, and circumstances giving rise to, the ‘amount’ referred to in the test
- relevance of the source of the payment or benefit received by the beneficiary.
If this is relevant to you or your clients, we encourage you to have your say. Your feedback helps us ensure our guidance provides the clarity you need. To find out more and provide feedback, review the TD and PCG and contact us.
Consultation is open until Wednesday 28 August.