This question is mandatory. Other than the answer to the question, no other details about the estimate are output and transmitted to the ATO. These are purely so that MYOB Tax can product an estimate where the Trustee is liable to pay tax on behalf of a beneficiary under a legal disability.
Tax can only produce one estimate showing the total tax payable by the Trustee. The What-if Calculator can be used to create the standalone estimate if you are required to provide an estimate for each of the beneficiaries. For information on how to create standalone estimates, refer to Calculations Index in the Calculator Help.
That part of the net income of the trust that has not been assessed to either a presently entitled beneficiary or the trustee on behalf of a presently entitled beneficiary; see Is a beneficiary presently entitled to a share of the income of the trust estate?
shares of the net income of a trust on behalf of individual or company beneficiaries not in their capacity as trustee of a trust estate who are presently entitled to a share of the income of the trust estate but are non-resident at the end of the income year; refer to Item 29 - Overseas transactions (Trust Returns) for additional information
shares of the net income of a trust on behalf of beneficiaries who are presently entitled to a share of the income of the trust estate but are under a legal disability
If the trust is a Special Disability trust and the 'principal beneficiary' is an Australian resident at the end of the income year, the 'principal beneficiary 'is treated as being under a legal disability
The rate of tax payable by the trustee will depend on the type of trust and the beneficiary's individual circumstances.
If the beneficiary is presently entitled to a share of the income of the trust estate, not under a legal disability, and is a resident at the end of the income year, then the beneficiary, not the trustee, is taxed on that same percentage share of the net income of the trust.
If the trustee is liable to pay any tax, print X in the Yes box at this item even if payments have been made in advance. Otherwise print X in the No box. The beneficiary or trustee pays tax on the net income of the trust. Net income means the total assessable income calculated as if the trustee was a resident taxpayer, less all allowable deductions, except deductions for net farm management deposits. In the case of any beneficiary with no beneficial interest in the trust corpus, past losses are required to be met out of corpus.
If the trustee is liable to pay tax, or has made payments in advance:
Select Yes at Is any tax payable by the trustee? to open the Select Estimate Category screens.
Payment Code: Select Tax payable or Refund due. This field has been introduced to meet the lodgment requirements for the new PLS system.
Are Income Tax estimates required? If you select Yes, then the Select applicable tax table field will be opened:
Highlight the tax table that represents the section under which the Trustee or beneficiaries are taxed and click Select to set the table that will be used in the preparation of the estimate of tax payable.
If you the Trustee is not taxable, then the Is the trust entitled to a full refund of franking credits? field is opened for editing.
Select Yes or No at Is the trust entitled to a full refund of franking credits?
In Accountants Enterprise, the Full Franking Credits question only applies where the tax table selected is 5, 6, 7, or 8.
If the trust does not expect to lodge further tax returns, select Yes for FINAL in the box at this item.
Attach a statement to the trust tax return showing:
the reason why further tax returns will not be lodged, and
the manner of disposal of any assets of the trust if not disclosed elsewhere on the tax return.
Note for Subsidiary member of a Consolidated Group:
If the Trust is a subsidiary member of a consolidated group, do not answer Yes for FINAL if membership of the consolidated group is the only basis on which the Trust will not be required to lodge future returns.
Request for non-taxable advice
If the trustee is not assessed on income and a non-taxable advice is required, complete an Other Attachments schedule to be lodged electronically with the return. Head it 'Request for a non-taxable advice'. The Name of the Trust and the TFN are automatically output for lodgment so there is no need to repeat them.
6-190 Period of administration of deceased estate
6-210 Minor beneficiaries, etc
6-220 Beneficiary non-resident at end of income year
6-230 No beneficiary presently entitled
6-250 Rates of tax payable by trustees