• #### Subsection 2 - Working out your assessable income where you do not have sufficient information to work out attributable income

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This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

If you are unable to obtain the information necessary to work out the attributable income of a trust estate, you must include an amount worked out using the following formula in your assessable income.

The formula is to be used for each transfer of property or services you made to the trust estate that is subject to the transferor trust measures.

The amount to include in your assessable income is worked out by applying a deemed rate of return to the market value of the property or services you transferred to the trust estate. The market value is adjusted for this calculation to reflect deemed returns for previous periods. The deemed rate of return for a particular period is 5% above the rate of interest that applies for that period under section 214A of the Act less 4 percentage points. If there are two or more rates of interest for the income year, you use the weighted average of these rates for the income year. The weighted average of the section 214A rate less 4 percentage points is referred to as the weighted statutory interest rate.

Use the following formulas to determine the amount to include in your assessable income for transfers of property or services after 12 April 1989.

Transfers made after 12 April 1989

 Amount to be included in assessable income = Adjusted value of the transfer x Weighted statutory interest rate plus 5%

The adjusted value for transfers made during the current income year is worked out as follows.

 Adjusted value of the transfer = Market value, immediately before the transfer of property or services x Days after the transfer to the end of the income year, divided by days in income year

Example 5

Transfer during current income year

An attributable taxpayer transferred property worth \$30,000 to a non-resident trust estate on 31 May 2004. There are 30 days between the transfer on 31 May and the end of the year - 30 June 2004.

The adjusted value is worked out as follows:

\$30,000 x (30 / 365) = \$2,465

If the transfer occurred before the taxpayer's current income year, the adjusted value of the transfer is the total of:

• the market value, immediately before the transfer, of the property or services transferred, and
• the total of the amounts that would have been included in the transferor's assessable income for that transfer in the income years preceding the taxpayer's current income year, if this method had been used in those years.

Where more than one transfer was made after 12 April 1989, the formula is applied separately to each transfer and then the relevant amounts are added together.