INCOME TAX ASSESSMENT ACT 1997 - SECT 207.134 Entity's present entitlement disregarded in certain circumstances

INCOME TAX ASSESSMENT ACT 1997 - SECT 207.134

    The present entitlement of a beneficiary of a trust to a share of trust income is disregarded for the purposes of Division   6 of Part   III of the Income Tax Assessment Act 1936 if:

  (a)   the beneficiary has claimed a * tax offset under section   207 - 45 or 207 - 110 of this Act on the basis that the beneficiary was an * exempt institution that was eligible for a refund in relation to a * trust share amount that is that share of trust income; but

  (b)   the beneficiary was not entitled to that tax offset because of the operation of section   207 - 120, 207 - 122, 207 - 124 or 207 - 126 in respect of a * distribution event, or an * arrangement, to which the trust share amount is related.

Note:   This means that the trustee of the trust is liable to pay income tax on that share of the trust income.