INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 1 - General  

SECTION 23AAAB   TESTAMENTARY TRUSTS MAY BE TREATED AS 2 TRUSTS  

23AAAB(1)   [Where assets given to trust existing before 1 July 1997]  

If:

(a) a trust (the existing trust ) covered by subparagraph 23(j)(ii) is in existence immediately before 1 July 1997; and

(b) on or after 1 July 1997 one or more assets are given to the existing trust (other than in return for valuable consideration) or become part of the trust property under a will;

then, for the purposes of subparagraphs 23(j)(ii) and (iia) , the existing trust is taken to be 2 separate trusts (the new trust and the old trust ) where:

(c) the new trust is taken to be a trust created after the start of 1 July 1997 that consists of so much of the trust property as consists of those assets together with any income derived from those assets; and

(d) the old trust is taken to be a trust created before 1 July 1997 that consists of the remainder of the trust property.

23AAAB(2)   [Application of s 23(j)(iia) to new trust]  

In relation to the new trust, subparagraph 23(j)(iia) applies as if the words ``in Australia'' (first occurring) were omitted from the subparagraph.

23AAAB(3)   [Substituted assets]  

Where an asset is received in substitution for another asset, subsection (1) applies as if the substituted asset were the other asset.