INCOME TAX RATES ACT 1986

PART II - RATES OF INCOME TAX PAYABLE UPON INCOMES OTHER THAN INCOMES OF COMPANIES, PRESCRIBED UNIT TRUSTS, SUPERANNUATION FUNDS AND CERTAIN OTHER TRUSTS  

Division 3 - Rates of tax  

Subdivision C - Resident taxpayers, resident beneficiaries and resident trust estates  

SECTION 14   LIMITATION ON TAX PAYABLE BY CERTAIN TRUSTEES  

14(1)  
Where -


(a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;


(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and


(c) that net income or that part of the net income of the trust estate does not exceed $416;

no tax is payable under subsection 12(6) in respect of that net income or that part of the net income, as the case may be.

14(2)  
Where -


(a) the trustee of a resident trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;


(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and


(c) that net income or that part of the net income of the trust estate exceeds $416 but does not exceed the net income phase-out limit;

the amount of tax payable by the trustee under subsection 12(6) in respect of that net income or that part of the net income shall not exceed 50% of the amount by which that net income or that part of the net income, as the case may be, exceeds $416, less any rebate or credit to which the trustee is entitled.

14(3)  


The net income phase-out limit is the following amount rounded down to the nearest dollar:


                $ 416 × 50 %                
50% - Lowest rate in the table in Part I of Schedule 7




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