ATO releases draft guidance on fixed entitlements

The ATO has released a draft practical compliance guideline outlining the factors it will consider when determining whether a trust is fixed, which can impact whether an SMSF has non-arm’s length income.

by Shared by SMSF Adviser | 10 Nov, 2016

Practical Compliance Guideline 2016/D16, released last week, outlines the factors that the commissioner will consider when deciding whether to exercise the discretion to treat an entitlement as being a fixed entitlement. The decision to treat it as a fixed entitlement results in a trust being treated as a fixed trust under the trust loss provisions.

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