From www.accountantsdaily.com.au: Tax specialist Michael Carruthers warns that issues related to family trust elections and family trust distribution tax are becoming more complex, due to increased scrutiny from the ATO and inadequate record keeping among tax professionals.
Common problems include trusts having different specified individuals, which complicates tax distribution and increases liability risks.
While interposed entity elections can help, they do not resolve all emerging issues associated with FTEs.