Foreign Trusts

Rules relating to foreign trusts can be even more onerous than those relating to foreign companies and professional advice should be sought prior to arriving in Australia.

In brief, entitlements to income from foreign trusts (whether fixed or potential) can be subject to tax in Australia. If you have ever provided services or property to a foreign trust you may also be assessable on all profits and the growth of the trust even if the monies are never remitted nor distributions made to you.

We are often asked by migrants if they can use their foreign trusts to operate their Australian businesses. We have not yet found an occasion when this has been practical or advantageous to our client.