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Interposed Entity Election (IEE)

Context and Why This Exists

In Australian tax structures, an Interposed Entity Election is commonly used so a trust, company, or partnership can be treated within the family group connected to a trust with an active Family Trust Election.

In practice, IEE tracking can become fragmented when groups change over time. Missing or outdated IEE records can create risk during distribution planning, year-end compliance review, and adviser handover.

StructureGram keeps IEE records attached to entities and linked to the relevant family trust so you can see election state, timing, and history in one place.

Important: This page is operational guidance for recording data in StructureGram. It is not legal or tax advice.

What the Feature Does

StructureGram lets you add and maintain IEEs as records keyed to a target family trust.

Each IEE record captures:

  • Target family trust
  • Election status
  • Effective income year
  • Election and revocation dates
  • Change history and notes

Current entity support in the app:

  • Trusts: can create and update IEEs
  • Companies: can create and update IEEs
  • Partnerships: can create and update IEEs
  • Individuals and SMSFs: cannot hold IEEs

The app validates that an IEE can only be added when the target trust has an active FTE.

If IEE Badge is enabled in diagram settings, entities with active IEEs show an IEE icon on ownership diagram nodes.

How to Use It

  1. Open the entity that will hold the IEE (trust, company, or partnership).
  2. In entity details, open Tax Elections.
  3. Open Interposed Entity Elections and click Add IEE.
  4. Select the target family trust from the dropdown (active FTE trusts only).
  5. Enter election status, effective income year, and election date.
  6. Add a short note for audit context.
  7. Save and confirm the IEE appears in the records table.

To update an existing IEE:

  1. Open the same Interposed Entity Elections section.
  2. Click the edit action for the relevant trust row.
  3. Update status, year, dates, and note.
  4. Save and review the change history.

To revoke an IEE:

  1. Use the revoke action on the IEE row.
  2. Enter the revocation date.
  3. Optionally add a note.
  4. Confirm revocation.

To show IEE status on diagrams:

  1. Open an ownership diagram.
  2. Open Diagram Settings.
  3. Turn on IEE Badge.
  4. Confirm entities with active IEEs display the IEE icon.

Edge Cases and Expected Behavior

You can only select trusts with active FTE for new IEE records

  • The add form filters the family trust dropdown to trusts currently holding active FTE status.

IEE year cannot be earlier than parent trust FTE year

  • The service blocks IEE years earlier than the linked trust's FTE effective year.

Revoking a parent trust FTE invalidates linked IEEs

  • If a trust's FTE is revoked, related IEEs referencing that trust are automatically marked invalidated.

Active IEE count excludes revoked and invalidated rows

  • Summary badges and counts only include active records.

Partnership support is IEE-only

  • Partnerships can hold IEE records but cannot hold FTE records.

Troubleshooting (Q&A)

I cannot find a trust in the Add IEE dropdown

Most likely cause:

  • The trust does not currently have an active FTE.

Fix:

  1. Open the trust and confirm FTE status is active.
  2. Return to the IEE form and select the trust again.

I get an error saying the parent trust must have an active FTE

Most likely cause:

  • The trust election is not in active elected state.

Fix:

  1. Confirm the trust's FTE is elected and not revoked.
  2. Retry the IEE action.

IEE save fails because of effective income year

Most likely cause:

  • The IEE year is earlier than the parent trust's FTE year.

Fix:

  1. Check the parent trust's FTE effective year.
  2. Use the same or later year for the IEE.

IEE icon is missing on the diagram

Most likely causes:

  • IEE Badge is turned off in diagram settings.
  • The IEE record is revoked or invalidated.

Fix:

  1. Enable IEE Badge in Diagram Settings.
  2. Confirm at least one active IEE exists for the entity.

Best Practice

Use a parent-first workflow:

  1. Confirm the parent trust FTE is accurate and active.
  2. Add or update IEEs on linked trusts, companies, and partnerships.
  3. Keep notes concise and meaningful for adviser handover.
  4. During compliance reviews, turn on diagram badges so active and invalidated patterns are visible quickly.

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