To be issued in mid-2024, it will explain when the ATO will consider enforcement action based on section 99B of the Income Tax Assessment Act 1936 (the 1936 Act), where distributions have been made from non-resident trusts to beneficiaries. It will also provide taxpayers with practical guidance about record keeping.

S.99B applies when money or another asset of a foreign trust is paid to or applied for the benefit of a beneficiary of the trust. The amount or value of the asset is included in the recipient's assessable income, although there are some exceptions. These include when the distribution has already been assessed to the beneficiary or trustee under another provision of the income tax law or when it represents an amount of initial corpus of the trust or additional contributions of corpus.