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 102UM   TRUSTEE BENEFICIARY NON-DISCLOSURE TAX WHERE SHARE IS DISTRIBUTED TO TRUSTEE OF CLOSELY HELD TRUST  

102UM(1)   [ Application]  

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 trustee of the closely held trust becomes presently entitled to an amount that is reasonably attributable to the whole or a part of the untaxed part of the share; and


(c) trustee beneficiary non-disclosure tax is not payable by the trustee of the closely held trust on the untaxed part under paragraph 102UK(2)(a) .

Consequences of section applying

102UM(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. 2) 2007 , on the whole or that part of the untaxed part; and


(b) except for the purposes of sections 99 , 99A and 99B and this Division, the whole or that part of 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 .

102UM(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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