INCOME TAX ASSESSMENT ACT 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 9 - Attribution of attributable income and other amounts  

SECTION 460   ONLY RESIDENT PARTNERS, BENEFICIARIES ETC. LIABLE TO BE ASSESSED AS A RESULT OF ATTRIBUTION  

460(1)  


This section applies where an amount is included under section 456 , 457 , or 459A in the assessable income of an Australian partnership or an Australian trust of a year of income, except where the Australian trust is, in relation to the year of income:


(a) (Repealed by No 53 of 2016)


(b) a public trading trust within the meaning of Division 6C of that Part; or


(c) a complying superannuation fund, a non-complying superannuation fund, a complying approved deposit fund, a non-complying approved deposit fund or a pooled superannuation trust.

460(2)  
Where:


(a) as a result of the amount being so included, there is, apart from this subsection, a tax detriment for:


(i) a partner in the Australian partnership; or

(ii) a partner in another partnership (in this subsection called the " ultimate partnership " ), where the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the partner and the Australian partnership or the Australian trust; and


(b) the partner is not, in respect of his or her interest in the net income or partnership loss of the Australian partnership or the ultimate partnership, in the capacity of trustee of a trust; and


(c) the tax detriment would be reduced by an amount if it were recalculated on the assumption that section 92 applied only to so much of the partner ' s interest in the net income or partnership loss of the Australian partnership or the ultimate partnership as is attributable to periods when the partner was a Part X Australian resident;

then, for the purposes of this Act, the tax detriment is taken to be reduced by that amount.

460(3)  
Where:


(a) as a result of the amount being included as mentioned in subsection (1), there is, apart from this subsection, a tax detriment for:


(i) a beneficiary in the Australian trust; or

(ii) a beneficiary in another trust (in this subsection called the " ultimate trust " ), where the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the beneficiary and the Australian partnership or the Australian trust; and


(b) the beneficiary is not a partnership and is not, in respect of his or her share of the net income of the Australian trust or the ultimate trust, in the capacity of trustee of another trust; and


(c) the tax detriment would be reduced by an amount if it were recalculated on the following assumptions:


(i) sections 97 , 98A and 100 applied only to so much of the beneficiary ' s share of the net income of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident;

(ii) Subdivision 115-C of the Income Tax Assessment Act 1997 applied only to so much of the beneficiary ' s share of each capital gain of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident;

(iii) Subdivision 207-B of the Income Tax Assessment Act 1997 applied only to so much of the beneficiary ' s share of each franked distribution of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident;

then, for the purposes of this Act, the tax detriment is taken to be reduced by that amount.

460(4)  
Where:


(a) as a result of the amount being included as mentioned in subsection (1), there is, apart from this subsection, a tax detriment for:


(i) the trustee of the Australian trust; or

(ii) the trustee of another trust (in this subsection called the " ultimate trust " ), where the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the trustee and the Australian partnership or the Australian trust; and


(b) the tax detriment would be reduced by an amount if it were recalculated on the assumption that:


(i) section 98 applied only to so much of a beneficiary ' s share of the net income of the Australian trust or the ultimate trust as is attributable to periods when the beneficiary was a Part X Australian resident; and

(ii) sections 99 and 99A applied only to the Australian trust or the ultimate trust if it were a resident trust estate within the meaning of Division 6 of Part III ;

then, for the purposes of this Act, the tax detriment is taken to be reduced by that amount.

460(5)  
(Omitted by No 48 of 1991)


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