Beneficiaries of discretionary trust

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Trust taxation

Rosa and Sam Costello are the only two beneficiaries of a discretionary trust created by their grandfather during his lifetime. The trust is resident in Australia for tax purposes. Rosa aged 23 years resides in Italy and is a non-resident for Australian tax purposes. Sam aged 16 years is a resident of Australia. During the 2022/23 tax year the trustee received a gross dividend of $7000 from a company resident in Italy. No withholding tax had been deducted at source on this dividend. The trust also received a fully franked dividend of $8 800 from a resident Australian company with a 30% tax rate. The trustee resolved to distribute the income equally between the two beneficiaries. Advise the beneficiaries on the cash amount of their distribution and identify the Australian income tax liability of both the trustee and the beneficiaries on the distributions for the 2022/23 tax year.

 

Reference no: EM133627877

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