Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 195 - Special types of company  

Subdivision 195-C - Corporate collective investment vehicles  

Operative provisions

SECTION 195-120   Beneficiary of a CCIV sub-fund trust has fixed entitlements to shares of income and capital of the trust  

195-120(1)    
A * beneficiary of a * CCIV sub-fund trust is taken to have a fixed entitlement to a share of income of the trust that the trust derives from time to time. At a particular time, that share is equal to the percentage worked out using the formula:

Beneficiary dividends	× 100
Total dividends

where:

beneficiary dividends
is the total of the * dividends that the * beneficiary has a right to receive because of * shares that the beneficiary holds at that time and are * referable to the * sub-fund.

total dividends
is the total of all * dividends that are payable on all * shares that are on issue at that time and are * referable to the * sub-fund.

195-120(2)    
A * beneficiary of a * CCIV sub-fund trust is taken to have a fixed entitlement to a share of the capital of the trust at a particular time equal to the percentage worked out using the formula:

Beneficiary capital distribution	× 100
Total capital distribution

where:

beneficiary capital distribution
is the amount of a distribution of paid-up capital (in the event of a return of capital) that the * beneficiary has a right to receive because of * shares that the beneficiary holds at that time and are * referable to the * sub-fund.

total capital distribution
is the total distribution of paid-up capital (in that event) payable on all * shares that are on issue at that time and are * referable to the * sub-fund.

195-120(3)    
A fixed entitlement that exists because of this section is taken to be a fixed entitlement within the meaning given by sections 272-5 , 272-10 , 272-15 and 272-40 in Schedule 2F to the Income Tax Assessment Act 1936 .

Note:

This is relevant to, for example, the definition of fixed entitlement in subsection 102UC(4) of the Income Tax Assessment Act 1936 .