Taxation Return for Trusts

A trust, such as a Family Trust, allows you to protect assets from creditors as well as legally minimise some tax liabilities. The Trust allows you to distribute income to several beneficiaries who then pay tax based on their own marginal rate.

Different types of trusts govern how income is distributed. For example, Discretionary Trusts allow for discretion on how to distribute funds, as opposed to a Fixed Trust where the distribution of income is pre-determined. A Hybrid Trust has characteristics of both. It is important to determine how the income of a trust will be distributed soon after the end of the financial year, as any funds not distributed by the end of the grace period will attract a high rate of tax.

Laws surrounding trusts are complex, and to gain maximum benefit it is recommended that you receive specialised advice when preparing a tax return for your trust. At International Taxation Services, we pride ourselves on specialising in the preparation of taxation returns for all types of Trusts, namely Family Trusts, Unit Trusts and Property Trusts.

Contact us now so we can assist you with the taxation return for your trust.