The ATO is paying increased attention to checking the validity of trust distribution minutes.
Points of interest by the ATO include:
- Profit distribution is made to beneficiaries that are included beneficiaries under the trust deed.
- If particular categories of income are allocated to different beneficiaries, this streaming of the different categories of income is allowable under the trust deed.
- Decision is made by the appropriate parties who are actually the trustee/s of the trust or directors of the trustee of the trust.
- Decision is made in time in accordance with trust law and the trust deed for that particular year. This is normally by 30 June each year unless there is some unusual wording in the trust deed.
To assist us with ensuring that the decision is documented by the trustees and that it is in time, we have this year introduced the drafting of the minutes through the CAS360 software. This software is what we use for maintaining the electronic updating of corporate registers for our client’s companies and trusts.
The CAS360 software also allows us to utilise sending out most of our client’s trust distribution minutes for electronic signing via FuseSign. FuseSign is an electronic method of signing of documents based on each signing parties’ unique email address or mobile. Essentially it means that the trustees will each receive a message with a link to review the documents and if they are in agreement to the distribution minute, it can be approved on the screen with a few clicks.
For our clients whom are receiving trust distribution minutes, please watch out for emails from firstname.lastname@example.org to access these distribution minutes. Please note if you have multiple trusts, you will be receiving a separate email for each trust.
Once all trustees or the sole trustee have signed via FuseSign, we are instantly advised that the trust distribution minutes have been signed for our records.
FuseSign (using the email address email@example.com) also sends a signed copy via email to the trustee/s for their records.
Both MGI and the trustee/s will receive a detail report from FuseSign which advises per signing party the exact time and date they confirmed their acceptance to the trust distribution minute. It will mean that we will have these details available if the ATO requests it.
We ask that if you do receive emails from firstname.lastname@example.org that you attend to them promptly to ensure that your trust/s distribution minutes are completed on time.