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 102UK   TRUSTEE BENEFICIARY NON-DISCLOSURE TAX WHERE NO CORRECT TB STATEMENT  

102UK(1)  


Subject to subsection (2A), this section applies if:


(a) a share of the net income of a closely held trust for a year of income is included in the assessable income of a trustee beneficiary of the trust under section 97 ; and


(b) the share comprises or includes an untaxed part; and


(c) the trustee of the closely held trust is not covered by a determination under subsection (1A) for the year of income; and


(ca) the closely held trust is none of the following:


(i) a family trust (within the meaning of section 272-75 in Schedule 2F );

(ii) a trust in relation to which an interposed entity election has been made and is in force in accordance with section 272-85 in Schedule 2F ;

(iii) a trust covered by subsection 272-90(5) in Schedule 2F ; and


(d) during the TB statement period in relation to the year of income, the trustee of the closely held trust does not make and give to the Commissioner a correct TB statement about the share.

Determination that a class of trustees is not required to give a correct TB statement

102UK(1A)  


The Commissioner may, by legislative instrument, determine that a specified class of trustees is not required to make a correct TB statement for a year of income.

102UK(1B)  


A determination under subsection (1A):


(a) may be expressed to be subject to conditions; and


(b) may be for one or more years of income.

Consequences of section applying

102UK(2)  


If this section applies:


(a) either:


(i) if the trustee of the closely held trust is the only person in the trustee group (see subsection (3)) - the trustee is liable to pay tax; or

(ii) if the trustee of the closely held trust is not the only person in the trustee group - the persons in the trustee group are jointly and severally liable to pay tax;
as imposed by the Taxation (Trustee Beneficiary Non-disclosure Tax) Act (No 1) 2007 , on the untaxed part; and


(b) except for the purposes of sections 99 , 99A and 99B and this Division, the untaxed part is not included in the assessable income of the trustee beneficiary under section 97 .

Note:

Provisions dealing with the payment etc of the tax under paragraph (a) (known as trustee beneficiary non-disclosure tax) are set out in Subdivision D .

Amendment of incorrect statement

102UK(2A)  


If:


(a) during the TB statement period in relation to a year of income, the trustee of a closely held trust makes and gives to the Commissioner a statement, that the trustee believes on reasonable grounds is a correct TB statement, about a share of the net income of the trust; and


(b) the statement is not a correct TB statement about the share, with the result that, apart from this subsection, this section applies; and


(c) either:


(i) the trustee could not reasonably have foreseen the event that caused the statement not to be a correct TB statement; or

(ii) the statement is not a correct TB statement because of an inadvertent error; and


(d) either:


(i) before any trustee beneficiary non-disclosure tax becomes due and payable on the untaxed part as a result of this section applying; or

(ii) before the end of 4 years after any such tax becomes due and payable;
the trustee advises the Commissioner in writing of any change that is necessary to make the statement a correct TB statement about the share;

this section does not apply, and is taken never to have applied, to the untaxed part.

102UK(3)   Trustee group.  

The trustee group consists of the following:


(a) the trustee of the closely held trust;


(b) if the trustee of the closely held trust is a company - the directors of the company.


 

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