Private ruling: Beneficiary present entitlement
Date of advice: 23 August 2021
Published: December 2021
Ruling period: Year Ending 30 June 20XX | Year Ending 30 June 20XX | Year Ending 30 June 20XX | Year Ending 30 June 20XX | Year Ending 30 June 20XX | Year Ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the default beneficiaries of the Family Trust presently entitled to the net income (if any) of the Trust for the financial years ended 30 June 20XX to 30 June 20XX? | A1: Yes. As the Trust Deed contains a provision for default beneficiaries, the default beneficiaries are taken to be presently entitled to the net income of the Trust for the years ended 30 June 20XX to 30 June 20XX.

Relevant facts and circumstances: • You are a discretionary trust. • The family trust deed was originally drawn up in 19XX. • The specified beneficiaries of the trust are XXXX and XXXX. • The family trust deed has been amended three times since 19XX however the specified beneficiaries has never changed. • No minutes of distribution of the net income of the trust were identified for the income years 20XX to 20XX. • Apart from the distribution you received from XXXX in the 20XX and 20XX income years you have not been able to determine the net income of the Trust for the income years 20XX to 20XX. • The Family Trust Deed states that the trustees can hold the net income of the Trust Fund for each Accounting Period. There is no evidence that this has occurred. • The Family Trust Deed indicates that the specified beneficiaries are the default beneficiaries of the Trust as tenants in common to equal shares absolutely.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 97