INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 6D - Provisions relating to certain closely held trusts  

Subdivision C - Trustee beneficiary non-disclosure tax on share of net income  

SECTION 102UM   TRUSTEE BENEFICIARY NON-DISCLOSURE TAX WHERE SHARE IS DISTRIBUTED TO TRUSTEE OF CLOSELY HELD TRUST  

102UM(1)   [ Application]  

This section applies if:


(a) a share of the net income of a closely held trust for a year of income is included in the assessable income of a trustee beneficiary of the trust under section 97 ; and


(b) the trustee of the closely held trust becomes presently entitled to an amount that is reasonably attributable to the whole or a part of the untaxed part of the share; and


(c) trustee beneficiary non-disclosure tax is not payable by the trustee of the closely held trust on the untaxed part under paragraph 102UK(2)(a) .

Consequences of section applying

102UM(2)  
If this section applies:


(a) either:


(i) if the trustee of the closely held trust is the only person in the trustee group (see subsection (3)) - the trustee is liable to pay tax; or

(ii) if the trustee of the closely held trust is not the only person in the trustee group - the persons in the trustee group are jointly and severally liable to pay tax;
as imposed by the Taxation (Trustee Beneficiary Non-disclosure Tax) Act (No. 2) 2007 , on the whole or that part of the untaxed part; and


(b) except for the purposes of sections 99 , 99A and 99B and this Division, the whole or that part of the untaxed part is not included in the assessable income of the trustee beneficiary under section 97 .

Note:

Provisions dealing with the payment etc of the tax under paragraph (a) (known as trustee beneficiary non-disclosure tax) are set out in Subdivision D .

102UM(3)   Trustee group.  

The trustee group consists of the following:


(a) the trustee of the closely held trust;


(b) if the trustee of the closely held trust is a company - the directors of the company.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.