INCOME TAX ASSESSMENT ACT 1997
This section applies for the purposes of determining whether an entity is *connected with you, for the purposes of:
(a) this Subdivision; and
(b) sections 328-110 , 328-115 and 328-125 so far as they relate to this Subdivision. 152-78(2)
The trustee of a discretionary trust may nominate not more than 4 beneficiaries as being controllers of the trust for an income year (the relevant income year ) for which the trustee did not make a distribution of income or capital if the trust had a *tax loss, or no *net income, for that year. 152-78(3)
A nomination under subsection (2) has effect as if each nominated beneficiary controlled the trust for the relevant income year in a way described in section 328-125 .
This means each nominated beneficiary is connected with the trust.152-78(4)
A nomination under subsection (2) must:
(a) be in writing; and
(b) be signed by the trustee and by each nominated beneficiary.
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