Australia's largest stock trading and investment forum Australia's #1 stock forum

Any receipts from a related entity, which is in form of trust...

First 12 Last

Share
Profile

Follow
Phalanx922

8 Posts.

06/09/20

13:46

Post #: 47122791
Share

Originally posted by Headhunter: ↑

That is provided it is a gift from an individual. Where the payment is received from a foreign trust then the 'catch all' provision, section 99B, could very well apply.

Similarly, if it comes from a private company (that is a private company as defined in taxation law and not the corporations law relevant to the country the company is domiciled in), then Division 7A, could apply.

Something that may be viewed as a gift in the eyes of the receiver is not necessarily so in the eyes of taxation law (e.g. because the receiver would not necessarily view the in-laws as being separate from the resources that they own/control directly and indirectly).

Anyway the point of my post is merely to be wary that it is possible that a payment from the resources of foreign in-laws could be taxed.

Expand

Any receipts from a related entity, which is in form of trust distribution (revenue or capital) cannot be considered as gift.
I think you are completely getting off tracked.
The discussion was for the funds received from overseas, so Div 7A cannot be applied as this rule is for Australian based companies lending funds to its shareholders and or associates.
The main factor to consider is that the receipt of funds are not coming from the income generated by the recipient overseas
1 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 12 more messages in this thread...

First 12 Last