Taxation Determination

TD 92/112

Income tax: foreign income: is an amount to be excluded from a trust's attributable income under sub-subparagraph 102AAU(1)(c)(i)(A) if the amount will be included in a beneficiary's assessable income under section 97 at a later point in time?

  • Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be releasedFOI number: I 1212793

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, the Determination applies to transactions entered into both before and after its date of issue.

1. Sub-subparagraph 102AAU(1)(c)(i)(A) of the Income Tax Assessment Act 1936 provides that the attributable income for a year of income of a non-resident trust estate may be reduced by an amount 'that is or has been included in the assessable income of a beneficiary under section 97'. We accept that amounts satisfy this requirement if they will be included in a beneficiary's assessable income under section 97 after the assessment of the attributable taxpayer in respect of the trust estate.

2. For instance, an amount might be included in a beneficiary's assessable income under section 97 after the assessment of an attributable taxpayer in respect of a non-resident trust estate if the beneficiary has a substituted accounting period ending after the attributable taxpayer is assessed in relation to the net income of the non-resident trust estate.

Example:

A non-resident trust estate to which the transferor trust measures apply derives $1,000 interest income during the 1991-92 income year (1 July 1991 - 30 June 1992) and distributes that income to an Australian beneficiary on 30 June 1992. The beneficiary is a company which has a substituted accounting period ending on 30 December 1992. The interest income will be included in the assessable income of the company beneficiary under section 97 when assessed.
Even though an attributable taxpayer of the trust estate is assessed before the $1,000 interest income is included in the assessable income of the company beneficiary, sub-subparagraph 102AAU(1)(c)(i)(A) applies to exclude the interest income from the attributable income of the trust estate.

Commissioner of Taxation
09/07/92

References

ATO references:
NO 92/3745-3

ISSN 1038 - 3158

Subject References:
non-resident trust estates;
attributable income

Legislative References:
ITAA 102AAU

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).