There are specific taxation requirements which must be met in order for a Prescribed Private Fund to achieve deductible gift recipient (a tax deduction is available to a donor) and income tax exempt status. Taxation issues that must be addressed include:

• Selecting trustees/directors including an appropriate “responsible person”
• Drafting a trust deed acceptable to both the Taxation Office and the family
• Establishing an investment process and a distribution and accumulation policy
• Preparing and lodging annual information returns
• Conducting annual audits