basics - a representative voice for the tax community, ntaa
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Special offer to Non-MembersPlease call and discuss the $100 (approx) seminar discounts which are available to members of the NTAA for a low annual fee of only $295, which includes a 12 month subscription to the monthly newsletter Voice, 3 FREE 10 minute telephone calls to our tax advisers plus discounts on most NTAA products.
National Tax & Accountants' Association Ltd.29-33 Palmerston CrescentSouth Melbourne, Vic. 3205Tel: (03) 9209 9999Fax: (03) 9686 4744Web: www.ntaa.com.auEmail: [email protected]: 76 057 551 854
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Presented byRebecca Morgan & Michael Gilmour
on behalf of the National Tax & Accountants’ Association Ltd.
The PresentersRebecca Morgan Rebecca is a Taxation Specialist with the NTAA and has over 12 years tax experience. Rebecca holds a Bachelor of Arts and Law and a Masters of Taxation. Rebecca has presented a number of the Back to Basics Seminar series and is also a regular presenter on Tax on the Couch.
Before joining the NTAA, Rebecca worked for the Australian Taxation Office as a Manager of Aggressive Tax Planning and also managed a number of general audit projects.
Michael GilmourMichael is a Taxation Specialist with the NTAA and has over ten years experience in tax, having worked in Corporate Tax at two Big 4 firms and the Taxation Consulting division of a 2nd Tier firm. Michael is a Chartered Accountant with a Bachelor of Commerce and a Bachelor of Economics.NTAA seminars are widely acclaimed for their practicality and professional delivery and book out very quickly. To avoid disappointment, register early.
CPD/CPE HoursThe seminar allows for 6.5 CPD/CPE hours per day.
TrustsBasics
Sem
inar
B
ack
to B
asic
s A
n N
TAA
2012
What will be covered on the day?r A Hands-on Guide to Setting Up and
Operating a Trust
r Step-by-step Guide to Preparing the 2012 Trust Tax Return
– STEP 1: Dealing with all major income and expense items
– STEP 2: Completing the ‘Distribution Statement’ – Avoid making costly mistakes
r An Essential Guide to Distributions from a Beneficiary’s Perspective!
And...all this is wrapped up with a comprehensive CASE STUDY, which brings together and highlights the various tax issues associated with trusts!
This seminar is more than just Basics
It is a practical workshop which focuses on UNDERSTANDING the FUNDAMENTALS of Trusts, from the ground-up.
TRUSTS Basics 2012 – An NTAA Back to Basics SeminarA Hands-on Guide to Setting Up and Operating a Trust
Laying the foundations – understanding trusts! We provide you with an essential guide to the fundamentals of trusts, from the ground-up! What’s necessary to set up a trust? – Easy to follow flowchart on what is required to
create a trust A practical guide to choosing the right Trustee – What are the advantages and disadvantages in
using a corporate trustee? Who should be the Settlor and Appointor of a trust? What is the significance of specifying someone as a
beneficiary of a trust? What are the key elements of a trust deed? – Unique NTAA Trust Deed checklist
A ‘hands-on’ guide to the types of trusts available and when they should be used
Comprehensive table identifying the advantages and disadvantages of using popular trust structures
Checklist of factors to consider when choosing the right trust for clients
Common GST issues with setting up a trust: – Who registers for GST, the trust or trustee? – Whose name and ABN goes on tax invoices? – What are the GST registration issues for a
partnership of trusts?
Debits, credits and everything in between for trusts! We unlock the confusion with accounting for trusts – starting with common journal entries being used to prepare the financials!
Date Debit Credit
01-Jun-12 50,000.0045,918.00
50,000.0045,918.00
25-Jun-12 Loan account - John Citize 30,000.00 Cash at bank 30,000.00
Loan to beneficiary
Description
Trust Distribution to John CitizenTrust Distribution to DEF Pty Ltd
Beneficiary entitlement - DEF Pty LtdTrust distribution to beneficiaries re 2012 income year
Beneficiary entitlement - John Citizen
A.B.C. FAMILY TRUSTABN 12 345 678 911
PROFIT AND LOSS STATEMENTFOR THE YEAR ENDED 30 JUNE 2012
2012 2011$ $
INCOME
Gross profit from rental activities 100,000.00 91,000.00Dividends Received 5,200.00 3,600.00Interest Received 1,600.00 1,200.00Trust Distributions Received 950.00 475.00Profit (loss) on sale non-current assets 23,000.00 2,750.00TOTAL INCOME 130,750.00 99,025.00
LESS EXPENDITUREAccounting Fees 6,500.00 5,900.00Bank Charges 1,250.00 1,100.00Building Write-Off 5,000.00 5,000.00Borrowing Costs 300.00 300.00Depreciation 6,970.00 8,135.00Interest Paid 12,800.00 15,300.00Land Tax 1,800.00 1,450.00Permits, Licences and Fees 212.00 212.00TOTAL EXPENDITURE 34,832.00 37,397.00
NET OPERATING PROFIT 95,918.00 61,628.00
Distribution to Beneficiaries:
John Citizen 50,000.00 50,000.00DEF Pty Ltd 45,918.00 11,628.00Total distribution 95,918.00 61,628.00
RETAINED PROFITS AT THE END OF THE FINANCIAL YEAR - -
Dealing with the challenges of different types of trust income Providing sample accounting entries for: • Franked dividends • Capital receipts • Capital allowance and building write-off claims Dealing with differences between accounting profits and
taxable incomeNEW ATO guidance on determining trust income Is trust income based on tax or accounting concepts? How does this impact on the preparation of the trust
financials? What is the ‘statutory cap’? What is the impact on the income tax return of the trust?A to Z guide to preparing the financials for tax purposes Should the financials be prepared on a tax basis? What is the relevance of accounting standards?A back to basics guide to dealing with the accounting entries for trusts What journal entries are required for trust distributions? How to distinguish between unpaid trust distributions
and beneficiary loansUsing the financial accounts to prepare a trust tax return What should you look for when provided with the
financial accounts of a trust? Checklist identifying key items in the financial accounts
that are relevant to the preparation of the trust tax return
TRUSTS Basics 2012 – An NTAA Back to Basics Seminar
STEP 1: Dealing with all the major income and expense itemsWe’ll show you how to complete the major business income and expense labels as well as other ‘key’ labels on the trust tax return.
L a b e l H – O t h e r business income – non-primary production
STEP 2: Completing the ‘Distribution Statement’ – Avoid making costly mistakes!We take the guesswork out of completing the essential labels on the distribution statement.
Step-by-step Guide to Preparing the 2012 Trust Tax Return
We work through the taxation of trust income, including: – Is trust income calculated under the Tax Act? – When is a beneficiary assessed on trust income? – Checklist on how to make a beneficiary presently entitled – NTAA practical guide on the operation of trust and net income – How to correctly identify all the components of a trust’s net income Detailed NTAA guide on the why, when and how of making Family Trust Elections and
Interposed Entity Elections Trust losses – What restrictions apply to trusts with losses? – Which losses can be carried forward by a trust? We walk through the process of reconciling accounting net profit to taxable income What types of income and capital can be streamed and how? Distributing franked dividends through trusts – What is the problem if a trust has a tax loss? – How to overcome the ‘45 day holding period rule’ trap Capital gains and trusts – How do capital gains affect calculating net income? – Practical examples of how to deal with trusts with capital gainsTrusts and Personal Services Income (PSI) We look at why the ATO spotlight is on PSI and Part IVA When do the PSI rules apply to trusts? What happens if the PSI rules apply? How is net income of a trust calculated when the PSI rules apply? What if a personal services business (PSB) is run through a trust? Is income splitting amongst family members acceptable for trusts which carry on a PSB?
NTAA step-by-step guide on how to complete the distribution statement on the return
Which assessment calculation codes are to be used for each beneficiary distribution?
A ‘plain English’ guide to making trust distributions – How does the trustee distribute income? – When must the distribution be made and paid? – What declarations/resolutions are needed to distribute
trust income? – Completing new trust return labels, including Labels S & T When must trustee beneficiary statements be completed for
distributions to trust beneficiaries? Dealing with the TFN withholding rules administration and
reporting requirements
Label S – Net income or loss from business
Label M – Repairs and maintenance
Label V – Assessment code
TB Statement Informaton
Label D – Franking Credit
Label F – Net Capital Gain
Label H – Other Assessable Foreign Source Income
Item 30 – Personal Services Income
TRUSTS Basics 2012 – An NTAA Back to Basics Seminar
What’s in? What’s out? Getting the disclosure RIGHT when completing a beneficiary’s tax return for their share of the trust’s net income.
An Essential Guide to Distributions from a Beneficiary’s Perspective!
Distributions to individuals Dealing with a distribution comprising capital gains and
revenue losses – the latest ATO guidelines What is the problem when receiving tax-free
distributions from a unit trust? When does a beneficiary qualify for franking credits
passing through a trust? Crackdown on income splitting for minors Beware distributions comprising franked dividends to
minors!Distributions to minors Who pays tax (and at what rate is tax paid) on
distributions to children? What impact does the low income rebate have?Distributions to non-residents Does withholding tax apply on the distribution? Will the non-resident need to lodge a tax return?Distributions to companies Do distributions to companies create Division 7A
problems? Tax effective strategies to ensure deemed dividends do
not ariseManaged fund distributions What is the tax treatment of managed fund distributions?
Comprehensive Case StudyThe day will conclude with a comprehensive case study, which brings together and highlights the various tax issues associated with trusts, including preparing the trust and beneficiary tax returns. Specific tax issues that will be covered include: Determining and accounting for trust income Calculating the net income of a trust, including how to deal with business income, franked dividends and
capital gains Unique NTAA guidelines on streaming capital gains and dividends to different beneficiaries to save tax Making valid trust distributions: – Journal entries to record the distribution – Sample trust distribution minutes – How to distribute income Completing the trust tax return, including the distribution statement Disclosing each beneficiary’s share of trust net income in their tax return
Comprehensive guide as to who is assessed on trust income and on what amounts?
MJ FAMILY TRUSTABN 12 345 678 910
FINANCIAL REPORTFOR THE YEAR ENDED 30 JUNE 2012
Glossary of Trust TerminologyWe provide a practical and easy to use reference guide, which explains all the common trust terms in plain English. We’ve removed all the technical jargon for you to simply understand the terms associated with trusts.
TRUSTS Basics 2012 REGISTRATION FORM
This document will be a tax invoice for GST when fully completed and you make a payment. National Tax & Accountants’ Association Ltd.
NTAA’s ABN: 76 057 551 854
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The Book of Rates 2011/12 ____________
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TRUSTS Basics 2012 Cost and Registration
Registration: Between 8.00am and 9.00amDuration: 9.00am to 5.00pmCost: Includes comprehensive notes, tea and
coffee on arrival, lunch, morning and afternoon tea
Members of the NTAA One delegate
$399 per day (incl. GST)Non-Members* of the NTAA One delegate $499 per day (incl. GST)
(Note(*): Registration includes 3 months full membership)
TRUSTS Basics 2012DATES AND VENUES
Sydney
SMC Conference & Function Centre, 66 Goulburn Street, Sydney
15 November 2012 (Thur) ____________
Parramatta
The Sebel Parramatta, 350 Church Street, Parramatta
12 November 2012 (Mon) ____________
Melbourne
Leonda by the Yarra, 2 Wallen Road, Hawthorn
26 November 2012 (Mon) ____________
Brisbane
Hilton Brisbane, 190 Elizabeth Street, Brisbane
22 November 2012 (Thur) ____________
Perth
Rendezvous Observation City Hotel, The Esplanade, Scarborough
19 November 2012 (Mon) ____________
Canberra
Hyatt Hotel, Commonwealth Avenue, Yarralumla
08 November 2012 (Thur) ____________
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If paying by cheque, please complete & mail to 29 Palmerston Crescent, South Melbourne Vic 3205
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