INCOME TAX ASSESSMENT ACT 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 802 - Foreign residents ' income with an underlying foreign source  

Subdivision 802-A - Conduit foreign income  

Operative provisions

SECTION 802-17   Trust estates and foreign resident beneficiaries - exempting CFI from Australian tax  

Foreign resident beneficiaries

802-17(1)  
So much of a share of the net income of a trust as is reasonably attributable to the whole or a part of the *unfranked part of a *frankable distribution made by an *Australian corporate tax entity that the entity declares, in its *distribution statement, to be *conduit foreign income:


(a) is not assessable income and is not *exempt income of a beneficiary of the trust who:


(i) is a foreign resident; and

(ii) is presently entitled to the share of the income of the trust; and


(b) is an amount to which section 128B (Liability to withholding tax) of the Income Tax Assessment Act 1936 does not apply.

Note:

A frankable distribution to which a part of the net income of a trust is reasonably attributable may be made by the Australian corporate tax entity to the trust directly, or to the trust indirectly through one or more interposed trusts.

802-17(2)  
The declaration must be made on or before the day on which the *distribution is made.

Note:

For a private company, this rule may bring forward the time at which the company is required to make its distribution statement: see section 202-75 .

Trusts

802-17(3)  
The trustee of a trust is not to be assessed (and pay tax) under section 98 , 99 or 99A of the Income Tax Assessment Act 1936 in respect of so much of the net income of the trust as is *non-assessable non-exempt income of a beneficiary of the trust under subsection (1).


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