INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-20 - TAX OFFSETS  

Division 61 - Generally applicable tax offsets  

Subdivision 61-P - ESVCLP tax offset  

Operative provisions

SECTION 61-770   Amount of the ESVCLP tax offset - members of trusts or partnerships  

61-770(1)  
If subsection 61-760(2) applies, the amount of the *member ' s *tax offset for the income year is as follows:

Determined share of notional tax offset × Notional tax offset amount

where:

determined share of notional tax offset
is the percentage determined under subsection (2) for the *member.

notional tax offset amount
is what would, under section 61-765 , have been the amount of the trust ' s or partnership ' s *tax offset (the notional tax offset ) if the trust or partnership had been an individual.

61-770(2)  
The trustee or partnership may determine the percentage of the notional tax offset that is the *member ' s share of the notional tax offset.

61-770(3)  
If, under the terms and conditions under which the trust or partnership operates, the *member would be entitled to a fixed proportion of any *capital gain from a *disposal, were the disposal to happen in relation to trust or partnership, of investments made as a result of contributions that gave rise to the notional tax offset:


(a) the percentage determined under subsection (2) must be equivalent to that fixed proportion at the end of the income year to which the notional tax offset relates; and


(b) a determination of any other percentage has no effect.

61-770(4)  
The trustee or partnership must give the *member written notice of the determination. The notice:


(a) must enable the member to work out the amount of the member ' s *tax offset by including enough information to enable the member to work out the member ' s share of the notional tax offset; and


(b) must be given to the member within 3 months after the end of the income year, or within such further time as the Commissioner allows.

61-770(5)  
The sum of all the percentages determined under subsection (2) in relation to the *members of the trust or partnership must not exceed 100%.


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