Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-E - Payments where TFN or ABN not quoted  

Payment of income of closely held trust where TFN not quoted

SECTION 12-180   BENEFICIARY BECOMES PRESENTLY ENTITLED TO INCOME OF CLOSELY HELD TRUST  

Scope

12-180(1)  
This section applies if:


(a) at the end of an income year of a trust, a beneficiary of the trust is presently entitled, for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936 , to a share of the income of the trust of that year; and


(b) paragraph 12-175(1)(c) in this Schedule applies to the trustee of the trust; and


(c) paragraph 12-175(1)(d) applies to the beneficiary. Trustee must withhold

12-180(2)  
The trustee must withhold an amount from that share of the *net income of the trust, if:


(a) the beneficiary did not *quote the beneficiary ' s *tax file number to the trustee before the end of the year; and


(b) the trustee is not liable to pay tax in respect of that share under section 98 of the Income Tax Assessment Act 1936 ; and


(c) the trustee is not required to make a correct TB statement about that share under Division 6D of Part III of that Act (about trustee beneficiary non-disclosure tax); and


(d) family trust distribution tax is not payable on that share of the income of the trust under Schedule 2F to that Act.

Note 1:

If the trust is a unit trust, the trustee may be required to withhold under section 12-145 in priority to this section: see section 12-5 .

Note 2:

The trustee commits an offence if the trustee fails to withhold an amount as required by this section: see section 16-25 .

Application of rest of Part

12-180(3)  
This Part (other than section 12-175 ) applies as if the trustee had paid that share of the *net income of the trust to the beneficiary at the end of the income year. Entitlements already paid

12-180(4)  
Subsections (2) and (3) do not apply to that share of the *net income of the trust to the extent that the trustee distributed any of that share to the beneficiary during the income year.

Note:

The trustee may have been required to withhold from that distribution under section 12-175 .

Trusts that end during the year

12-180(5)  
This section applies as if each reference to the end of an income year were a reference to the time occurring just before the trust ends, if the trust ends during the income year.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.