Source: http://clik.dva.gov.au/print/book/export/html/16350
Timestamp: 2019-08-23 22:30:46
Document Index: 334123120

Matched Legal Cases: ['art 10', 'art-10', 'art10', 'art10', 'art10', 'art10', 'art-10', 'art10', 'art-12', 'art10']

﻿ Distribution of the Income of a Private Trust or Company to a Non-attributable Stakeholder
Home > Compensation and Support Policy Library > Part 10 Types of Income and Assets > 10.3 Business Structures and Trusts > 10.3.12 Assessing the Income of & Distributions from a Private Trust or Company - From 01/01/2002 > Distribution of the Income of a Private Trust or Company to a Non-attributable Stakeholder
Distributions or dividends paid to non-attributable stakeholders before 1 July 2000 are not subject to the deprivation provisions [3] of the Act. For the non-attributable stakeholder the distribution or dividends are to be treated as income for 12 months from the date they became eligible to receive the distribution, ie. the date of resolution to distribute (usually 30 June). This concession was given in recognition of the fact that until Ministerial Announcement on 9 May 2000, most people would not have been aware of the proposed new means test treatment of private trusts and private companies.
Distribution or dividends paid to a non-attributable stakeholder on or after 1 July 2000 may be assessed as a gift from the attributable stakeholder [3](s) (subject to their attribution percentage [3](s)) and income of the non-attributable stakeholder for 12 months from the date of resolution to distribute. However distributions paid to a non-attributable stakeholder will be disregarded if:
the non-attributable stakeholder has been assessed as a genuine investor [3] and the distribution paid to the genuine investor is commensurate with their investment in the entity [3]. More ? [4]
Section 46A [6] VEA
10.3.11/Capital Injection in Return for Equity in a Private Trust or Company [8]
Chapter 12.6 Overpayments [10]
When making a decision whether a course of conduct warrants application of the deprivation provisions, reference should be made to section 48 of the VEA [12] in relation to income and section 52E of the VEA [12] in respect of assets.
According to section 52ZZJ of the VEA [12], a person is an attributable stakeholder if a company or trust is a controlled private company or trust in relation to the individual unless the Commission determines otherwise.
the person who made the capital injection is not an attributable stakeholder [3] of the company,
A genuine injection of capital in return for equity in a private trust can only occur where the trust is a fixed trust, and the person obtains units [3] in return for the injection of capital. Genuine investors have the historical value of the injected equity capital assessed as their asset.
Source URL (modified on 20/10/2014 - 3:25pm): http://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts/10312-assessing-income-distributions-private-trust-or-company-01012002/distribution-income-private-trust-or-company-non-attributable-stakeholder
[1] http://clik.dva.gov.au/user/login?destination=node/16350%23comment-form
[2] http://clik.dva.gov.au/book/export/html/16350#tgt-cspol_part10_ftn497
[4] http://clik.dva.gov.au/book/export/html/16350#tgt-cspol_part10_ftn498
[5] http://clik.dva.gov.au/book/export/html/16350#tgt-cspol_part10_ftn499
[7] http://clik.dva.gov.au/book/export/html/16350#ref-cspol_part10_ftn497
[8] http://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts/10311-assessment-capital-injection-private-trust-or-company-01012002/capital-injection-return-equity-private-trust-or-company
[9] http://clik.dva.gov.au/book/export/html/16350#ref-cspol_part10_ftn498
[10] http://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/126-overpayments
[11] http://clik.dva.gov.au/book/export/html/16350#ref-cspol_part10_ftn499