Private ruling: Residency of a trust
Published: October 2012
Ruling period: Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016
Date scheme commenced: 1 July 2013

Ruling: Q1: 1. Do you, as trustee, need to register for a tax file number for your family trust in Australia? | A1: Yes. | Q2: 2. Does the trust need to lodge a tax return in Australia? | A2: Yes. | Q3: 3. Is it acceptable to submit financial statements from your country of origin or must an Australian accountant redo them? | A3: Invalid. | Q4: 4. Will you be required to lodge a trust income tax return, regardless of the amount of income involved, unless exempted by the Commissioner? | A4: Yes.



Reasons for decision: Summary: For the purpose of establishing residency, trusts (other than unit trusts) will be considered Australian residents in any given income year if: · a trustee of the trust estate was a resident at any time during the year, or · the central management and control of the trust estate was in Australia at any time during the year. In your case, you are both the trustee of the trust and you have central management and control of the trust. Therefore, the family trust is considered to be an Australian trust for tax purposes. The trust is required to have its own: · tax file number (TFN), which the trustee uses in lodging income tax returns for the trust, and · Australian business number (ABN) if carrying on a business. · As trustee of the trust you are required to register for a TFN in your capacity as trustee. · A trustee is required to lodge a trust income tax return, regardless of the amount of income involved, unless exempted by the Commissioner. | Detailed Reasoning - Invalid question: Under section 359-5 of Schedule 1 of the Tax Administration Act 1953, the Commissioner can give a private ruling on the way in which a relevant provision applies or would apply to you in relation to a specified scheme. Your question in relation to whether it is acceptable to submit financial statements from your country of origin is not in relation to a relevant provision and is invalid. However, before you calculate your income and deductions, you must convert all your foreign income, foreign deductions and foreign tax paid into Australian dollars. The Foreign income conversion calculator found on our website, www.ato.gov.au, will assist you to convert foreign income into Australian dollars.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You are a citizen of another country and an Australian resident for tax purposes. | You are one of the trustees of a family trust, registered in your country of origin, and you are also a beneficiary of the trust. | The sole asset of the trust is money invested in your country of origin with interest on the investment taxed at the source. | Your accountant in your country of origin lodges your personal tax return in your country of origin as well as the trust return. | Your Australian accountant lodges your personal return in Australia. When the investment matures in 2013, you intend to bring the funds to Australia.