The trust may receive as a distribution from another partnership or trust, a share of:
credit for tax withheld where no ABN was quoted
franking credits from a franking entity
credit for TFN amounts withheld from interest, dividends and unit trust distributions
share of credit for tax withheld from foreign resident withholding (excluding capital gains)
If the income shown at labels A, Z, B or R includes any share of amounts withheld where an ABN was not quoted, show the share of that credit at label C. The trust or partnership Statement or distribution or advice should separately disclose this amount.
Show franking credits received directly from a paying Australian franking entity at M Franking credit item 12.
Do not show franking credits relating to a dividend received indirectly through another partnership or trust if any of the following applies:
- they were attributable to a distribution from a New Zealand franking company. If the trust received franking credits indirectly from a New Zealand franking company, refer to Item 23 - Other assessable foreign source income (Trust Returns)
- the holding period rule and related payments rule were not satisfied in relation to the dividend. Refer to Appendix 1 in the ATO Trust return instructions.
- Family Trust Distributions tax (FTDT) has been paid on the dividend paid or credited by a company which has made an interposed entity election. The dividend is excluded from assessable income under section 271-105 of Schedule 2F to the ITAA 1936. A franking credit or tax offset cannot be claimed for any franking credit attached to that dividend. For more information about the circumstance in which FTDT is payable, refer to Family trust distribution tax on the ATO website.
Unless the trust claimed an exemption or lodged a TFN, the investment body may withhold amounts from interest, dividends and unit trust distributions. These are called TFN amounts withheld. The withholding is currently at a rate of 47% of the payment made.
Show at label E the share of any credit for TFN amounts withheld from amounts of interest, dividends and income of unit trusts to which a beneficiary is presently entitled, that are received from partnerships or other trusts. Credits for TFN amounts withheld are allowed in the assessments of the partners, beneficiaries or trustees.
Where a beneficiary of a closely held trust does not provide their TFN to the trustee, the trustee may be required to withhold from payments or distributions.
Show at label O amounts withheld by a trustee of a closely held trust because a TFN was not provided.
Amounts may be withheld in Australia from certain payments made to certain partnerships or trusts due to the operation of the foreign resident withholding (excluding capital gains) measure. These payments relate to entertainment or sports activities, construction and related activities and casino gaming junket activities.
Show at label U the trust's share of any foreign resident withholding (excluding capital gains) credits received from other partnerships and/or trusts. Ensure that this amount is included in the gross distribution amount shown at item 8, label B Distribution from partnerships, less foreign income.
Note that the ATO has not provided fields on the face of the return to include any distributions from Partnerships or other Trusts of the new Venture capital offsets as shown below, nor for any share of Credit for foreign resident capital gains withholding amounts received by the trust from another trust of partnership.
The Distributions received from trusts worksheets (dit) and the Distributions from partnerships worksheet (dip) provide for direct data entry of the distributions of:
Share of Capital Gains
Share of Foreign Income and foreign tax paid on that foreign income
Share of Early stage venture capital limited partnership tax offset
Share of Early stage investor tax offset, and
Share of credit for foreign resident capital gains withholding.
These amounts are, in turn, created as transactions in the:
Capital Gains worksheet (g)
Foreign Income worksheet (for)
Early stage venture capital limited partnership tax offset worksheet (esv)
Early stage investor tax offset worksheet (esi), and
Credit for foreign resident capital gains withholding dialog (Item 21 label B).
Taxation of financial arrangements (TOFA)
Even if the TOFA rules apply to the trust, show at item 8 Partnerships and trusts the trust's share of all primary production and non-primary production income distributed from partnerships or included in the net income for tax purposes of other trusts and deductions relating to such amounts. This includes amounts from financial arrangements subject to the TOFA rules.
If what you show at item 8 Partnerships and trusts includes an amount which is brought to account under the TOFA rules, also complete item 31 Taxation of financial arrangements (TOFA).
Refer to Guide to the taxation of financial arrangements (TOFA) rules on the ATO website.