• Method 1

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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.

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    This method is used where all the income, profits or gains derived by the non-resident trust estate during the income year consisted of either or both:

    • income, profits or gains to which beneficiaries of the non-resident trust estate were presently entitled
    • income, profits or gains to which beneficiaries of the non-resident trust estate were not presently entitled but which were distributed to the beneficiaries within two months after the end of the income year.

    In the above cases, the beneficiaries are deemed to be presently entitled to a share of the net income of the non-resident trust estate equal to the percentage of the total income, profits or gains derived by the non-resident trust during a year of income.

    This percentage is represented by the total of the amounts:

    • to which the beneficiaries were presently entitled, or
    • to which the beneficiaries were not presently entitled but which were distributed to the beneficiaries of the trust estate within two months after the end of the income year. [subsection 96C(1)]
    Last modified: 27 May 2005QC 17512