S99B: payments or assets received from foreign trusts

The ATO has released draft Taxation Determination TD 2024/D2 and draft Practical Compliance Guideline PCG 2024/D1 on section 99B for public consultation.

TD 2024/D2 explains:

• the meaning of corpus in paragraph 99B(2)(a)
• the characteristics that may be ascribed to the hypothetical taxpayer
• the characteristics of the amount which are relevant for the hypothetical resident taxpayer tests
• why the ultimate source of the amount paid or applied to the beneficiary is relevant.

PCG 2024/D1 explains:

• common scenarios where section 99B may need to be considered
• the practical record keeping evidencing an exception in subsection 99B(2) applies to reduce the amount that section 99B would otherwise include in assessable income
• the ATO’s compliance to distributions and benefits which the Commissioner considers to be low risk, and the record keeping expected to substantiate this.