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Draft Taxation Determination

TD 93/D124

Income tax: where a trustee is assessed under sub-section 98(1) of the Income Tax Assessment Act 1936 (ITAA) and the income of the trust includes prescribed payments, are both the resident beneficiary of the trust who is under a legal disability, as well as the trustee, entitled to Prescribed Payments System (PPS) credits?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/193.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. No. The PPS credit is allowed in the trustee's assessment but not in the individual's assessment.

2. By virtue of paragraph 221YHF(3)(b) the trustee is entitled to a PPS credit where the trustee is assessable under sub-section 98(1) of the ITAA 1936.

3. There is no provision in the ITAA 1936 to allow the same credit in the assessment of the individual in the circumstances outlined above.

Commissioner of Taxation
27 May 1993

References


BO BANTD 35

ISSN 1038-8982

Related Rulings/Determinations:

IT 2125

Subject References:
beneficiaries
prescribed payments
trusts

Legislative References:
ITAA 98(1)
ITAA 221YHF(3)(b)


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