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INCOME TAX ASSESSMENT ACT 1936 - SECT 97

Beneficiary not under any legal disability

             (1)  Subject to Division 6D, where a beneficiary of a trust estate who is not under any legal disability is presently entitled to a share of the income of the trust estate:

                     (a)  the assessable income of the beneficiary shall include:

                              (i)  so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and

                             (ii)  so much of that share of the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia; and

                     (b)  the exempt income of the beneficiary shall include:

                              (i)  so much of the individual interest of the beneficiary in the exempt income of the trust estate as is attributable to a period when the beneficiary was a resident; and

                             (ii)  so much of the individual interest of the beneficiary in the exempt income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia;

                            except to the extent to which the exempt income to which that individual interest relates was taken into account in calculating the net income of the trust estate; and

                     (c)  the non-assessable non-exempt income of the beneficiary shall include:

                              (i)  so much of the individual interest of the beneficiary in the non-assessable non-exempt income of the trust estate as is attributable to a period when the beneficiary was a resident; and

                             (ii)  so much of the individual interest of the beneficiary in the non-assessable non-exempt income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia.

             (2)  A reference in this section to income of a trust estate to which a beneficiary is presently entitled shall be read as not including a reference to income of a trust estate:

                     (a)  to which a beneficiary is deemed to be presently entitled by virtue of the operation of subsection 95A(2) where the beneficiary:

                              (i)  is a natural person;

                             (ii)  is a resident at the end of the year of income;

                            (iii)  is not, in respect of that income, a beneficiary in the capacity of a trustee of another trust estate; and

                            (iv)  is not a beneficiary to whom subsection 97A(1) or (1A) applies in relation to the year of income; or

                     (b)  to which a beneficiary is presently entitled where the beneficiary:

                              (i)  is a non-resident at the end of the year of income;

                             (ii)  is not a beneficiary to whom subsection (3) of this section or subsection 97A(1) or (1A) applies in relation to the year of income; and

                            (iii)  is not, in respect of that income, a beneficiary in the capacity of a trustee of another trust estate.

             (3)  Where:

                     (a)  a beneficiary of a trust estate is presently entitled to a share of the income of the trust estate;

                     (b)  the beneficiary is a non-resident at the end of the year of income; and

                     (c)  the beneficiary is:

                              (i)  a body, association, fund or organization the income of which is exempt from tax by virtue of the operation of Subdivision 50-A or section 51-5, 51-10 or 51-30 of the Income Tax Assessment Act 1997 ; or

                             (ii)  an organization the income of which is exempt from tax by virtue of a regulation in force under the   International Organisations (Privileges and Immunities) Act 1963 ;

that beneficiary is, for the purposes of the application of this Division in relation to that beneficiary in relation to that year of income, a beneficiary to whom this subsection applies.



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