Tax Laws Amendment (2007 Measures No. 3) Act 2007 (79 of 2007)

Schedule 10   Distributions to foreign residents from managed investment trusts

Part 2   Consequential amendments

Income Tax Assessment Act 1936

7   Before subsection 100(2)

Insert:

(1C) If a beneficiary in a trust estate who is under a legal disability or is deemed to be presently entitled to any of the income of the trust estate by virtue of the operation of subsection 95A(2):

(a) is a resident at the end of the year of income; and

(b) is not a beneficiary in any other trust estate and does not derive income from any other source;

the assessable income of the beneficiary includes so much of the individual interest of the beneficiary in the net income of the trust estate as is represented by or reasonably attributable to a payment from which an entity was required to withhold an amount under Subdivision 12-H in Schedule 1 to the Taxation Administration Act 1953.

Note: A credit is available under section 18-50 in Schedule 1 to the Taxation Administration Act 1953 for an appropriate part of the amount withheld.