Taxation Implications of the Peak Performance Trust In early 2013, Succession Plus received positive Private Binding Rulings, from the ATO, for one of our clients which confirm all of the tax treatment outlined above. For further information and a copy of the ruling, they are now published on the ATO website (using the identical structure we have outlined above): There are three rulings (one applies to the trustee of the share plan, one to the employee/s and the other to the employer entity) . The reference numbers are 1012344703580, 1012397311007 and 1012385122401. The rulings confirm the following tax treatment:
Contributions to the PPT are tax deductible to the employer. The receipt of these contributions is not taxable income to the trust. The contributions are not taxable income to employees. No FBT is payable on the contributions to the PPT. No SGC will be applied to the contributions. Part IVA of the ITAA 1936 will not apply.
The rulings also confirm that the tax treatment does not change in the following examples:
Only one employee “joins” the PPT. The PPT becomes a majority shareholder in the employer.
7