INCOME TAX ASSESSMENT ACT 1997 - SECT 54.70 Special provisions about trusts

INCOME TAX ASSESSMENT ACT 1997 - SECT 54.70

  (1)   A payment of a * personal injury annuity or a * personal injury lump sum to the trustee of a trust is exempt from income tax for the trustee if:

  (a)   the beneficiary of the trust is the * injured person; and

  (b)   because of Subdivision   54 - B or 54 - C, the payment would have been exempt from income tax if it had been made directly to the beneficiary.

  (2)   A payment made in accordance with paragraph   54 - 35(3)(b) to the trustee of a trust is exempt from income tax for the trustee if:

  (a)   the beneficiary of the trust is the reversionary beneficiary; and

  (b)   because of section   54 - 65, the payment would have been exempt from income tax if it had been made directly to the beneficiary.

  (3)   A payment of a lump sum in accordance with subsection   54 - 35(4) to the trustee of a trust is exempt from income tax for the trustee.

  (4)   If a payment is exempt from income tax for a trustee because of this section, the payment is also exempt from income tax for a beneficiary, or the beneficiary, of the trust, even if the trustee:

  (a)   pays all or part of the payment to the beneficiary; or

  (b)   applies all or part of the payment for the benefit of the beneficiary.