If you have a trust which has distributed income to a company but not yet paid it out, watch this space. The ATO has recently decided to change their rules on how they treat this “beneficiary entitlement”. Now the amount outstanding may be treated as “deemed dividend” from the company to the trust. This is bad news. If you have a structure invoving companies and trusts, best to get the issues resolved before the ATO does it their way. Contact us to discuss how the new rules affect you and what we can do to help.