Income Tax Assessment Act 1997
If subsection 360-15(2) applies, the amount of the *member ' s *tax offset for the income year is as follows:
Determined share of notional tax offset × Notional tax offset amount
determined share of notional tax offset
is the percentage determined under subsection (2) for the *member.
notional tax offset amount
is what would, under section 360-25 , have been the amount of the trust ' s or partnership ' s *tax offset (the notional tax offset ) if the trust or partnership had been an individual.
However, reduce the amount worked out under subsection (1) to the extent necessary to ensure that the sum of the following does not exceed $200,000:
(a) the sum of the *tax offsets under this Subdivision for the income year for which the member and the member ' s *affiliates (if any) are entitled;
(b) the sum of the tax offsets under this Subdivision that the member and the member ' s affiliates (if any) carry forward to the income year.
The trustee or partnership may determine the percentage of the notional tax offset that is the *member ' s share of the notional tax offset. 360-30(3)
If, under the terms and conditions under which the trust or partnership operates, the *member would be entitled to a fixed proportion of any *capital gain from a *disposal:
(a) relating to the trust or partnership; and
(b) of the *shares that gave rise to the notional tax offset; and
(c) happening at the end of the income year to which the notional tax offset relates;
the percentage determined under subsection (2) must be equivalent to that fixed proportion, and a determination of any other percentage has no effect.
The trustee or partnership must give the *member written notice of the determination. The notice:
(a) must enable the member to work out the amount of the member ' s *tax offset by including enough information to enable the member to work out the member ' s share of the notional tax offset; and
(b) must be given to the member within 3 months after the end of the income year, or within such further time as the Commissioner allows. 360-30(5)
The sum of all the percentages determined under subsection (2) in relation to the *members of the trust or partnership must not exceed 100%.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.