Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 271 - Family trust distribution tax  

SECTION 271-30   TAX LIABILITY WHERE INTERPOSED COMPANY MAKES DISTRIBUTION OUTSIDE FAMILY GROUP  

271-30(1)  
This section applies if:


(a) a company makes an interposed entity election for the company to be included in the family group of the individual specified in a family trust election; and


(b) at any time while the interposed entity election is in force (including a time before it was made), the company confers a present entitlement to, or distributes, income or capital of the company:


(i) upon or to a person who is neither the individual specified in the family trust election nor a member of the individual ' s family group in relation to the conferral or distribution; or

(ii) upon or to the individual specified in the election or a member of the individual ' s family group, where the individual or member is the trustee of a trust, or the member is a trust, that is not included in the individual ' s family group in relation to the conferral or distribution.

271-30(2)  
If this section applies, the company, together with each person who was a director of the company at the time of the conferral or distribution, is jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998 , on the amount or value of the income or capital to which the entitlement relates, or that is distributed.


 

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