Section 100A Documentation Pack

The Section 100A Documentation Pack includes a template letter and beneficiary instruction form for trustees to send to beneficiaries after the trustee has resolved to distribute income to them. This practical resource is designed to minimise the risk of section 100A applying by clearly documenting that the beneficiary is aware of their trust entitlement and has made an independent decision on what to do with it.

While best practice is to put in place documentation straight after the present entitlement is created, many beneficiaries will have historical unpaid present entitlements (UPEs) that have built up over many years. For these historical UPEs, the pack includes a separate template letter and beneficiary instruction form for trustees to send to beneficiaries. This documentation helps mitigate the section 100A risk by the beneficiary acknowledging they are aware of the historical UPEs and reconfirming their instructions on what the trustee can do with the funds. This risk mitigation for historical UPEs is particularly important given that the ATO does not have a limitation period for section 100A.

These documents have been informed by the law on section 100A, and take into account the latest ATO guidance (Draft Taxation Ruling TR 2022/D1, Draft Practical Compliance Guideline PCG 2022/D1 and Taxpayer Alert TA 2022/1).

These documents are not legal advice. If you require advice on the application of section 100A please contact Birchstone Tax Law.

Once you purchase the Section 100A Documentation Pack you will receive a link to download the template letters and instruction forms (in Microsoft Word format), with accompanying user notes. If you are an advisor, the Section 100A Documentation Pack can be used for all of your clients.

 

AU$99.00