TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 18 - Recipient ' s entitlements and obligations  

Subdivision 18-A - Crediting withheld amounts  

Entitlement to credits: income tax liability

SECTION 18-25   TAX CREDIT WHERE RECIPIENT IS A TRUST  

18-25(1)  


An entity is entitled under subsection (2), (4), (6) or (8) to a credit in respect of *amounts withheld (the amounts withheld ) from *withholding payments made to the trustee of a trust during an income year. Trust - section 97

18-25(2)  
A beneficiary of the trust is entitled to a credit if:


(a) an amount is included in the assessable income of the beneficiary under section 97 of the Income Tax Assessment Act 1936 in respect of a share of the net income of the trust; and


(b) the share is wholly or partly attributable to the *withholding payments; and


(c) an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the beneficiary for the income year.

18-25(3)  
The amount of the credit is worked out using the formula:


Amounts withheld   × Share of net income
    Net income

where:

net income
means so much of the net income as is attributable to the *withholding payments.

share of net income
means so much of that share of the net income as is attributable to the *withholding payments.

Trust - section 98

18-25(4)  
The trustee of the trust is entitled to a credit if:


(a) under section 98 of the Income Tax Assessment Act 1936 the trustee is liable to be assessed, and to pay income tax, on an amount in respect of a share of the net income of the trust to which a beneficiary is presently entitled; and


(b) the share is wholly or partly attributable to the *withholding payments; and


(c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable.

18-25(5)  
The amount of the credit is worked out using the formula:


Amounts withheld   × Share of net income
    Net income

where:

net income
means so much of the net income as is attributable to the *withholding payments.

share of net income
means so much of that share of the net income as is attributable to the *withholding payments.

Trust - section 99 or 99A

18-25(6)  
The trustee of the trust is entitled to a credit under this subsection if:


(a) under section 99 or 99A of the Income Tax Assessment Act 1936 , the trustee is liable to be assessed, and to pay income tax, on the net income of the trust, or on part of it; and


(b) the net income or that part of it is wholly or partly attributable to the *withholding payments; and


(c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable.

18-25(7)  
The amount of the credit is worked out using the formula:


Amounts withheld   × Part of net income
    Net income

where:

net income
means so much of the net income as is attributable to the *withholding payments.

part of net income
means so much of the net income, or of that part of it, as is attributable to the *withholding payments.

Trust - no net income

18-25(8)  
If there is no net income of the trust for the income year, the trustee is entitled to a credit equal to the sum of the *amounts withheld from the *withholding payments.

18-25(9)  
(Repealed by No 32 of 2008 )




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