INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

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.