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  • If the trustee is assessed

    On behalf of certain beneficiaries

    A trustee may be assessed and liable to pay tax under section 98 of the ITAA 1936 in respect of a beneficiary. The trustee is assessed on the beneficiary's share of a franked distribution and attached franking credit. The trustee, subject to eligibility, may be entitled to an offset equal to their share (on behalf of a beneficiary) of the franking credit.

    On income no beneficiary is presently entitled to

    A trustee may also be assessed under section 99 or 99A of the ITAA 1936 if there is trust income to which no beneficiary is presently entitled. The trustee must increase the amount they are assessed on to reflect their share of any franked distribution and attached franking credit. Again, subject to eligibility, the trustee may be entitled to an offset equal to their share of the franking credit.

      Last modified: 22 Apr 2016QC 24534