Tax return for inactive discretionary trust with corporate trustee

I recently created a discretionary trust with a corporate trustee but have done nothing with it (no transactions whatsoever).

1. Do I need to lodge a tax return for the trust and another for the company?
2. Can I do it myself? If so, how?

 

1. yes
2. If you are the director of the company, yes. if not no. How - get a tax agent or work out how to do a nil return for each. subject to any rules in the trust deed. An accountant may be needed.

 

1. No. You can advise the ATO that the trust has not commencing activities and has no return to furnish. The company may merely be a trustee or it may be a bucket co. This may affect if it needs to be registered and if it also must lodge in the same way.
2. Trustee or tax agent can do it.

We have many clients with that issue. eg Start a dev and it can take 2 years before a dev site activity occurs. We will lodge a simple form with the ATO until it gets closer to build and sales and then activate the GST registration etc. Then do tax returns, construction industry payments reporting, BAS etc.

It is VERY important with dormant trusts that a bank account or the trust funds settled for the trust are retained. Otherwise the trust may vest and come to an end. A trust without assets is just A4 paper.

 

Thanks Terry and Paul. Much appreciated.