INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 6AAA - Special provisions relating to non-resident trust estates etc.  

Subdivision C - Winding-up of non-resident trust estates in existence on 12 April 1989  

SECTION 102AAN   WINDING-UP OF NON-RESIDENT TRUST ESTATES - TAX REBATES  

102AAN(1)   [Rebatable amount]  

If:

(a) an amount (in this section called the section 99B amount ) is included in the assessable income of a taxpayer of:

(i) the year of income commencing on 1 July 1988 (which year of income is in this section called the taxpayer's year of income ); or

(ii) the year of income commencing on 1 July 1989 (which year of income is in this section also called the taxpayer's year of income ); or

(iii) the year of income commencing on 1 July 1990 (which year of income is in this section also called the taxpayer's year of income );

under section 99B in relation to:

(iv) a trust estate that:

(A) if the period commencing on 1 July 1988 and ending at the IP time had been a year of income, would be a non-resident trust estate in relation to that year of income; and

(B) was in existence, and was a discretionary trust estate, at the IP time; and

(v) an amount paid to, or applied for the benefit of (within the meaning of section 99B ), the taxpayer after the IP time; and

(b) before the IP time, one or more entities (in this section called the transferors ) transferred property or services to the trust estate; and

(c) at least one of the transferors was an Australian entity at:

(i) in any case - the time of that transfer of property or services; or

(ii) in the case of an entity who is a natural person (other than a natural person in the capacity of trustee) - the end of 30 June 1991; or

(iii) in the case of an entity to whom subparagraph (ii) does not apply - the IP time; and

(d) the trust estate is completely wound up before 30 June 1991; and

(e) neither the transferors, nor any associate of the transferors, transferred property or services to the trust estate after the IP time (not being property or services relating to, or consisting of, the provision of personal services in connection with that winding-up);

the following provisions have effect:

(f) the taxpayer is the original taxpayer in relation to the section 99B amount and in relation to the taxpayer's year of income;

(g) the section 99B amount, as reduced by so much of that amount as represents an amount that, if it had been derived by a taxpayer being a resident, would have been an amount of assessable income derived, or included in assessable income, in respect of property or services transferred to the trust estate after the IP time, is to be taken to be the rebatable section 99B amount.

102AAN(2)   [Taxpayer entitled to rebate]  

If the original taxpayer in relation to the section 99B amount in relation to the taxpayer's year of income is:

(a) a company or a natural person (other than a company or a natural person in the capacity of a trustee); or

(b) the trustee of a corporate unit trust in relation to the taxpayer's year of income; or

(c) the trustee of a public trading trust in relation to the taxpayer's year of income; or

(d) the trustee of an eligible entity (within the meaning of Part IX ) in relation to the taxpayer's year of income;

the following provisions have effect:

(e) the taxpayer is entitled to a rebate of tax in the taxpayer's assessment for the taxpayer's year of income of such an amount (if any) that is necessary to ensure that the rate of tax on the rebatable section 99B amount does not exceed 10%;

(f) a reference in subsection 160AF(1) to the foreign income of the taxpayer does not include a reference to the rebatable section 99B amount.

102AAN(3)   [Trustee liable under s 98, 99 or 99A]  

If:

(a) the original taxpayer in relation to the section 99B amount in relation to the taxpayer's year of income is the trustee of a trust estate who is liable to be assessed and pay tax under section 98 , 99 or 99A in respect of a part of, or a share in, the net income of the trust estate; and

(b) the whole or a part (which whole or part is in this subsection called the taxpayer's portion of the section 99B amount ) of the part or share of the net income is attributable to the section 99B amount;

the following provisions have effect:

(c) the taxpayer is entitled to a rebate of tax in the taxpayer's assessment for the taxpayer's year of income of such an amount (if any) as is necessary to ensure that the rate of tax on so much of the taxpayer's portion of the section 99B amount as represents the rebatable section 99B amount does not exceed 10%;

(d) a reference in subsection 160AF(1) to the foreign income of the taxpayer does not include a reference to the rebatable section 99B amount.

102AAN(4)   [Actual taxpayer entitled to rebate]  

If:

(a) the original taxpayer in relation to the section 99B amount in relation to the taxpayer's year of income is the trustee of a trust estate or a partnership; and

(b) the following conditions are satisfied in relation to another taxpayer (in this subsection called the actual taxpayer ):

(i) an amount is included in the assessable income of the actual taxpayer of a year of income (in this subsection called the current year of income ) under subsection 92(1) or section 97 , 98A or 100 ;

(ii) the actual taxpayer is:

(A) a company or a natural person (other than a company or a natural person in the capacity of a trustee); or

(B) the trustee of an eligible entity (within the meaning of Part IX ) in relation to the current year of income; or

(C) the trustee of a corporate unit trust in relation to the current year of income; or

(D) the trustee of a public trading trust in relation to the current year of income; or

(E) the trustee of a trust estate who is liable to be assessed and pay tax under section 98 , 99 or 99A in respect of a part of, or a share in, the net income of a trust estate;

(iii) if sub-subparagraph (ii)(A), (B), (C) or (D) applies - the whole or a part of the amount so included in the actual taxpayer's assessable income (which whole or part is in this subsection called the taxpayer's portion of the section 99B amount ) is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the section 99B amount;

(iv) if sub-subparagraph (ii)(E) applies - the whole or a part (which whole or part is in this subsection also called the taxpayer's portion of the section 99B amount ) of the part or share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the section 99B amount;

the following provisions have effect:

(c) the actual taxpayer is entitled to a rebate of tax in the taxpayer's assessment for the current year of income of such an amount (if any) as is necessary to ensure that the rate of tax on so much of the taxpayer's portion of the section 99B amount as represents the rebatable section 99B amount concerned does not exceed 10%;

(d) a reference in subsection 160AF(1) to the foreign income of the actual taxpayer does not include a reference to so much of the taxpayer's portion of the section 99B amount as represents the rebatable section 99B amount concerned.