INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 207 - Effect of receiving a franked distribution  

Subdivision 207-B - Franked distribution received through certain partnerships and trustees  

Key concepts

SECTION 207-59   Franked distributions within class treated as single franked distribution  

207-59(1)  


Subsection (2) applies if:


(a) a trust receives 2 or more *franked distributions in an income year; and


(b) all of the franked distributions that the trust receives in the income year are, in accordance with the terms of the trust, to the extent that they are distributed in that income year, distributed within a single class.

207-59(2)  
For the purposes of this Subdivision and Division 6E of Part III of the Income Tax Assessment Act 1936 , treat all of the *franked distributions that the trust receives in the income year as one single franked distribution.

207-59(3)  
To avoid doubt, for the purposes of subsection (1), something is done in accordance with the terms of the trust if it is done in accordance with:


(a) the exercise of a power conferred by the terms of the trust; or


(b) the terms of the trust deed (if any), and the terms applicable to the trust because of the operation of legislation, the common law or the rules of equity.


 

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