Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 272 - Interpretation  

Subdivision 272-B - Distribution of income or capital  

SECTION 272-63  

272-63   DISTRIBUTE INDIRECTLY  

A trust distributes income or capital indirectly to an individual if it distributes the income or capital to a company, partnership or trust (the first interposed entity ) interposed between the trust and the individual and:

(a) the first interposed entity distributes to the individual an amount or property attributable to the income or capital; or

(b) another company, partnership or trust (the final interposed entity ) distributes to the individual an amount or property that is attributable to the income or capital as a result of:

(i) the distribution of an amount or property attributable to the income or capital to the final interposed entity by the first interposed entity; or

(ii) successive distributions of amounts or property attributable to the income or capital to and by any companies, partnerships or trusts interposed between the first interposed entity and the final interposed entity.