Easily produce a client report providing advice on the implications of the S100A guidelines, which modify the recommended method of distributing profits from a Discretionary (Family) Trust.
Key features of this client advice report
Impact of ATO's Tax Ruling (TR 2022/4): Discusses the impact on the allocation of profits from Discretionary Trusts.
Potential Risks: Outlines the risks associated with making trust distributions to adult children or arranging for them to give the distribution back to parents or grandparents.
Navigating ATO's Views: Provides advice on how to stay in the "green zone" to avoid an audit.
Required naming conventions for scenario comparisons
To produce the optimal client report, follow these recommended naming conventions:
Base Scenario: Start with the Base Scenario (rename to Common Scenario) and include the usual trust distribution strategy of making large trust distributions to an adult child.
Scenario 1: For the next scenario (rename to Scenario 1 - No Distribution to Adult Child), allocate extra distribution to Mum and Dad entities instead of the adult child.
Scenario 2: For this scenario (rename to Scenario 2 - Smaller Distribution to Adult Child), allocate and pay a smaller distribution to the adult child to stay within the "green zone" and avoid a tax audit. Select this as the Recommended scenario.
Exporting the advice report
Download the report: Click the Reports button to download the pre-formatted report.
Select report options: In the Reports Modal, select the necessary options to download the report as an MS Word document.
Save the report: Save the document to your preferred local drive.