Income Tax Assessment Act 1997



Division 802 - Foreign residents ' income with an underlying foreign source  

Subdivision 802-A - Conduit foreign income  

Operative provisions

SECTION 802-17   Trust estates and foreign resident beneficiaries - exempting CFI from Australian tax  

Foreign resident beneficiaries

So much of a share of the net income of a trust as is reasonably attributable to the whole or a part of the *unfranked part of a *frankable distribution made by an *Australian corporate tax entity that the entity declares, in its *distribution statement, to be *conduit foreign income:

(a) is not assessable income and is not *exempt income of a beneficiary of the trust who:

(i) is a foreign resident; and

(ii) is presently entitled to the share of the income of the trust; and

(b) is an amount to which section 128B (Liability to withholding tax) of the Income Tax Assessment Act 1936 does not apply.


A frankable distribution to which a part of the net income of a trust is reasonably attributable may be made by the Australian corporate tax entity to the trust directly, or to the trust indirectly through one or more interposed trusts.

The declaration must be made on or before the day on which the *distribution is made.


For a private company, this rule may bring forward the time at which the company is required to make its distribution statement: see section 202-75 .


The trustee of a trust is not to be assessed (and pay tax) under section 98 , 99 or 99A of the Income Tax Assessment Act 1936 in respect of so much of the net income of the trust as is *non-assessable non-exempt income of a beneficiary of the trust under subsection (1).


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