Consequences of Not Lodging a Correct TB Statement
The repercussions of not submitting a correct TB statement for trust distributions differ based on the distribution components, such as whether it includes an untaxed or tax-preferred amount.
Untaxed Amount:
- If a distribution contains untaxed income, the trustee is typically liable for 'trustee beneficiary non-disclosure tax' (TBNT) at a rate of 47%.
- TBNT isn't considered assessable income for the trustee beneficiary.
- The trustee must fill out a 'Trustee beneficiary non-disclosure tax payment advice' form (NAT 72967) to notify the ATO of the TBNT amount and make the payment within 21 days of the trust tax return due date.
Corporate Trustee Responsibility:
- If the trustee is a company, each director shares joint and several liability for TBNT, except in certain circumstances like illness preventing involvement in the decision not to lodge a correct TB statement.
Tax-Preferred Amount:
- Failure to report a tax-preferred amount in a correct TB statement could constitute an offence under the Taxation Administration Act 1953, potentially leading to penalties.
Understanding these consequences emphasizes the importance of complying with correct TB statement lodgement requirements to avoid financial and legal repercussions.
Should you have any questions or need assistance, feel free to reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.