INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
PART IIIA
-
CAPITAL GAINS AND CAPITAL LOSSES
(a) during the test year, the trust made a distribution of income, a distribution of capital or both; and
(b) if the trust made at least one such distribution of income - the trust distributed to the individual, for the individual's benefit, at least a 50% share of all distributions of income made by the trust during the test year; and
(c) if the trust made at least one such distribution of capital - the trust distributed to the individual, for the individual's benefit, at least a 50% share of all distributions of capital made by the trust during the test year. 160ZZPZQ(2) Test year.
(a) if the test time concerned (see subsection 160ZZPZP(4) ) is in the same year of income as the disposal concerned - the year of income immediately before that year of income; or
(b) in any other case - the year of income in which the test time occurs.
Division 17B
-
Disposal of small business assets: proceeds used for retirement
Subdivision E
-
Definitions
SECTION 160ZZPZQ
PATTERN OF DISTRIBUTIONS TEST
160ZZPZQ(1)
[When test is passed]
A trust passes the pattern of distributions test for the test year (see subsection (2)) in relation to an individual if:
(a) during the test year, the trust made a distribution of income, a distribution of capital or both; and
(b) if the trust made at least one such distribution of income - the trust distributed to the individual, for the individual's benefit, at least a 50% share of all distributions of income made by the trust during the test year; and
(c) if the trust made at least one such distribution of capital - the trust distributed to the individual, for the individual's benefit, at least a 50% share of all distributions of capital made by the trust during the test year. 160ZZPZQ(2) Test year.
For the purposes of subsection (1), the test year is:
(a) if the test time concerned (see subsection 160ZZPZP(4) ) is in the same year of income as the disposal concerned - the year of income immediately before that year of income; or
(b) in any other case - the year of income in which the test time occurs.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.