TAXATION FOR TRUSTS

Trustees and beneficiaries of business or personal trusts know that they are complex structures but can also be a great way to organise one’s investments, preserve wealth for retirement and estate planning as well as to minimise a taxation burden. However, if managed incorrectly, a trust can create issues relating to non-compliance and incur tax avoidance penalties.

Whether operating a business or simply investing via a Discretionary or Unit Trust, you can rely on Stones Sharp Certified Practising Accountants to help you maintain the integrity of your finances while preserving your succession planning efforts and protecting your assets.

The volume, type and frequency of tax you will need to pay on your trust income depends on many complex factors such as your annual turnover, whether or not you distribute trust income to beneficiaries, if you are distributing income to adult beneficiaries, non-residents or minors and matters relating to the Trust Deed.

GETTING YOUR TRUST UP AND RUNNING

In establishing your trust you will need to consider the terms of the Trust Deeds, the Settlor, the Appointor, the beneficiaries and the necessity for a corporate trusttee.

Not only will your trust be required to have its own Tax File Number and Australian Business Number (ABN), but it may also be required to be registered for GST. Tax may be due depending on how your Trsut Deed is worded and if you have distributed any earned income. If your Trust business employees staff, your trust will also need to consider registering for Pay As You Go Withholding, Workcover, Payroll Tax and paying Superannuation benefits.

However, with the correct management and guidance, you might be eligible for certain concessions.

Not only will Stones Sharp CPA help you with all matters relating to establishment of your Trust, but we’ll also assist you with relevant taxation registrations, annual submissions as well as partnering with you and your business mentoring you to assist you in achieving both your personal and business goals.
Make the most of your trusts and the advantages of running your business through a trust structure by contacting one of Stones Sharp’s CPA’s to assist you.