INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 6D - Provisions relating to certain closely held trusts  

Subdivision C - Trustee beneficiary non-disclosure tax on share of net income  

SECTION 102UL   EXCLUSION OF DIRECTORS OF CLOSELY HELD TRUST FROM LIABILITY TO PAY TAX  

102UL(1)   [ Application]  

This section applies if a director of a company that is the trustee of the closely held trust is included in the trustee group under section 102UK .

102UL(2)   Director not taking part in statement decision because of illness or other good reason.  

If, because of illness or for some other good reason, the director did not take part in any decision not to make the correct TB statement, the director is not included in the trustee group.

102UL(3)   Director otherwise not taking part in statement decision.  

If:


(a) the director did not take part in any decision not to make the correct TB statement; and


(b) either:


(i) the director was not aware of the proposal to make such a decision; or

(ii) the director was aware and took reasonable steps to prevent the making of the decision;

the director is not included in the trustee group.

102UL(4)   Director taking part in statement decision.  

If:


(a) the director took part in any decision not to make a correct TB statement; and


(b) the director voted against, or otherwise disagreed with the decision; and


(c) the director took reasonable steps to ensure that a correct TB statement would be made;

the director is not included in the trustee group.

102UL(5)   Where no statement decision.  

If:


(a) no decision was made not to make a correct TB statement; and


(b) either:


(i) the director, because of illness or for some other good reason, was not involved in the management of the company during the TB statement period in relation to the year of income; or

(ii) the director took reasonable steps to ensure that a correct TB statement would be made;

the director is not included in the trustee group.


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