Income Tax Assessment Act 1997
CHAPTER 4
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INTERNATIONAL ASPECTS OF INCOME TAX
PART 4-5
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GENERAL
Division 802
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Foreign residents
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income with an underlying foreign source
Subdivision 802-A
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Conduit foreign income
Operative provisions
SECTION 802-17 Trust estates and foreign resident beneficiaries - exempting CFI from Australian tax
Foreign resident beneficiaries
802-17(1)
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:
(b) is an amount to which section 128B (Liability to withholding tax) of the Income Tax Assessment Act 1936 does not apply.
802-17(2)
The declaration must be made on or before the day on which the *distribution is made.
Trusts
802-17(3)
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).
View history note
Hide history noteSECTION 802-17 Trust estates and foreign resident beneficiaries - exempting CFI from Australian tax
Foreign resident beneficiaries
802-17(1)
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.
Note:
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.
802-17(2)
The declaration must be made on or before the day on which the *distribution is made.
Note:
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 .
Trusts
802-17(3)
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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