INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
PART III
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LIABILITY TO TAXATION
Division 2A
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Calculation of taxable income
Subdivision B
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Calculation of taxable income where disqualifying event occurs
SECTION 50P
INFORMATION ABOUT FAMILY TRUSTS WITH INTERESTS IN COMPANY
50P(1)
Notice about family trust.
(a) the company must not have calculated its taxable income in accordance with section 50C ; or
(b) the company must have calculated its taxable income in accordance with that section and in doing so must have taken into account an amount, by reason of subsection 50D(2) , in ascertaining the eligible notional loss of the company. 50P(3) Second requirement.
(a) if paragraph (2)(a) applies - the company was not required to calculate its taxable income in accordance with section 50C but it would have been if one or more trusts had not been family trusts (see subsection (6)); or
(b) if paragraph (2)(b) applies - the company was required to calculate its taxable income in accordance with section 50C and in doing so was entitled to take into account the amount by reason of subsection 50D(2) , but it would not have been so entitled unless one or more trusts had been family trusts (see subsection (6)). 50P(4) Third requirement.
(a) a trustee of the trust must be a non-resident; or
(b) the central management and control of the trust must be outside Australia. 50P(5) Fourth requirement.
(a) 5 years after the year of income to which the return relates; and
(b) the end of the period during which the company is required by section 262A to retain records in relation to that year of income. 50P(6) Family trust.
View history note
Hide history noteThe Commissioner may give a company a notice in accordance with section 50Q if the requirements of subsections (2) to (5) of this section are met.
50P(2) First requirement.In its return of income for a year of income:
(a) the company must not have calculated its taxable income in accordance with section 50C ; or
(b) the company must have calculated its taxable income in accordance with that section and in doing so must have taken into account an amount, by reason of subsection 50D(2) , in ascertaining the eligible notional loss of the company. 50P(3) Second requirement.
The Commissioner must be satisfied that:
(a) if paragraph (2)(a) applies - the company was not required to calculate its taxable income in accordance with section 50C but it would have been if one or more trusts had not been family trusts (see subsection (6)); or
(b) if paragraph (2)(b) applies - the company was required to calculate its taxable income in accordance with section 50C and in doing so was entitled to take into account the amount by reason of subsection 50D(2) , but it would not have been so entitled unless one or more trusts had been family trusts (see subsection (6)). 50P(4) Third requirement.
When the Commissioner gives the notice, for at least one of the family trusts:
(a) a trustee of the trust must be a non-resident; or
(b) the central management and control of the trust must be outside Australia. 50P(5) Fourth requirement.
The Commissioner must give the notice before the later of:
(a) 5 years after the year of income to which the return relates; and
(b) the end of the period during which the company is required by section 262A to retain records in relation to that year of income. 50P(6) Family trust.
The expression family trust has the same meaning as in section 272-75 of Schedule 2F .
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