Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and certain trust capital gains  

Subdivision 115-C - Rules about trusts with net capital gains  

Operative provisions

SECTION 115-235   Giving information to beneficiaries  

115-235(1)    
If a trust is covered by a determination under subsection (4) , the trustee must:

(a)    prepare a statement for each beneficiary of the trust who, because of subsection 115-215(3) , makes one or more * capital gains for an income year in relation to capital gains of the trust estate for the income year; and

(b)    ensure the statement complies with subsection (2) ; and

(c)    give the statement to the beneficiary within the period specified in, or worked out under, the determination.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

115-235(2)    
The statement complies with this subsection if it:

(a)    is in the * approved form; and

(b)    states the amount of each of those * capital gains that the beneficiary makes; and

(c)    sets out which of those capital gains are * non-residential capital gains, * residential capital gains, * deferred non-residential capital gains or * deferred residential capital gains; and

(d)    sets out the effect of subsections 115-215(4) , and 115-225(5) if applicable, in relation to each of those capital gains.

Note:

Subsection 115-215(4) deals with the status of capital gains as discount capital gains, and the effect of Subdivision 152-C having been applied to the trust gain. Subsection 115-225(5) makes adjustments to remove the effect of indexation on the cost bases of the relevant CGT assets.

115-235(3)    
A trustee of a trust is not required to prepare and give a statement under subsection (1) for an income year if a report is given, or required to be given, under section 393-10 in Schedule 1 to the Taxation Administration Act 1953 in respect of the trust estate for the * financial year that corresponds to the income year.

115-235(4)    
The Commissioner may, by legislative instrument, determine that trustees of all or specified kinds of trusts are required:

(a)    to prepare and give statements under subsection (1) to beneficiaries of the trusts; and

(b)    to do so before the end of:

(i) a specified period; or

(ii) a period worked out using a specified method.