INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 272 - Interpretation  

Subdivision 272-B - Distribution of income or capital  

SECTION 272-60   OTHER DISTRIBUTIONS OF INCOME AND CAPITAL  

272-60(1)  
A company, partnership or trust (an entity ) also distributes income or capital to a person in circumstances not covered by section 272-45, 272-50 or 272-55 if it:


(a) pays (including by way of a loan) or credits money of the entity to the person, or reinvests such money for the person; or


(b) transfers property of the entity to, or allows use of property of the entity by, the person; or


(c) deals with money or property of the entity for or on behalf of the person or as the person directs; or


(d) applies money or property of the entity for the benefit of the person; or


(e) extinguishes, forgives, releases or waives a debt or other liability owed by the person to the entity. Limit on distributions

272-60(2)  
However, subsection (1) only applies if, and to the extent that:


(a) the amount paid, credited, reinvested or applied, the value of the property transferred, or the value of the other thing done;

exceeds:


(b) the amount or value of any consideration given in return. Character of distributions

272-60(3)  
Each thing that is a distribution because of subsection (1) is a distribution of income unless it is clear that the money or property concerned was capital, or that the debt or liability was attributable to capital, of the entity.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.