Income tax: are division 6B and division 6C unit trusts subject to the company self assessment provisions?
1
Yes. The definition of 'company' in subsection 221AK(1) of the Income Tax Assessment Act 1936 includes a trustee of a 'corporate unit trust' and a trustee of a 'public trading trust'.
2
Trusts within the meaning of division 6B or 6C are subject to the company tax arrangements.
3
In these circumstances to fulfil the application of section 161 and the Income Tax Regulations, a trustee should lodge a return of income on a company form.
4
Payment of any income tax liability is required to be made in accordance with the company self assessment system.
5
Distributions of income made by the trustee to unitholders are treated in the same way as dividends paid to shareholders.