EPISODE · Nov 5, 2025 · 44 MIN
Taxing distributions from foreign trusts: the Section 99B trap
from Tax Archives with Fletch and Sarah · host HLS Tax Law
In this episode, Fletch and Sarah cross borders to expose one of Australian tax’s stealthiest provisions — section 99B — where what seems like a harmless capital payment from a foreign trust can quickly become assessable income for an Australian resident beneficiary. We unpack how sections 99B and 99C operate, when the Commissioner steps in, and why tracing the true source of funds is key to staying out of trouble. Along the way, we share practical tips for identifying amounts of corpus and the Commissioner’s current compliance approach to 99B.
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Taxing distributions from foreign trusts: the Section 99B trap
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