Taxation Administration Act 1953
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Hide history noteNote: See section 3AA .
Chapter 2 - Collection, recovery and administration of income taxSECTION 18-25 TAX CREDIT WHERE RECIPIENT IS A TRUST
Note: A Commissioner ' s Remedial Power (CRP 2017/1) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Foreign Resident Capital Gains Withholding) Determination 2017 (F2017L00992) modifies the operation of s 18-15 , 18-20 and 18-25 in Sch 1 to the Taxation Administration Act 1953 as follows:
To the extent that an entity ' s entitlement to a credit referred to in s 18-15 , 18-20 or 18-25 in Sch 1 to TAA is in respect of an amount paid to the Commissioner under Subdiv 14-D of Sch 1 to TAA, treat the entitlement as arising in the income year in which the transaction causing that application of Subdiv 14-D is recognised for income tax purposes for the entity. The modification applies in respect of transactions entered into on or after 1 July 2016.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to TAA to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
An entity is entitled under subsection (2), (4), (6) or (8) to a credit in respect of *amounts withheld (the amounts withheld ) from *withholding payments made to the trustee of a trust during an income year.
Trust - section 97
18-25(2)
A beneficiary of the trust is entitled to a credit if:
(a) an amount is included in the assessable income of the beneficiary under section 97 of the Income Tax Assessment Act 1936 in respect of a share of the net income of the trust; and
(b) the share is wholly or partly attributable to the *withholding payments; and
(c) an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the beneficiary for the income year.
18-25(3)
The amount of the credit is worked out using the formula:
| Amounts withheld × |
Share of net income
Net income |
where:
net income
means so much of the net income as is attributable to the *withholding payments.
share of net income
means so much of that share of the net income as is attributable to the *withholding payments.
Trust - section 98
18-25(4)
The trustee of the trust is entitled to a credit if:
(a) under section 98 of the Income Tax Assessment Act 1936 the trustee is liable to be assessed, and to pay income tax, on an amount in respect of a share of the net income of the trust to which a beneficiary is presently entitled; and
(b) the share is wholly or partly attributable to the *withholding payments; and
(c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable.
18-25(5)
The amount of the credit is worked out using the formula:
| Amounts withheld × |
Share of net income
Net income |
where:
net income
means so much of the net income as is attributable to the *withholding payments.
share of net income
means so much of that share of the net income as is attributable to the *withholding payments.
Trust - section 99 or 99A
18-25(6)
The trustee of the trust is entitled to a credit under this subsection if:
(a) under section 99 or 99A of the Income Tax Assessment Act 1936 , the trustee is liable to be assessed, and to pay income tax, on the net income of the trust, or on part of it; and
(b) the net income or that part of it is wholly or partly attributable to the *withholding payments; and
(c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable.
18-25(7)
The amount of the credit is worked out using the formula:
| Amounts withheld × |
Part of net income
Net income |
where:
net income
means so much of the net income as is attributable to the *withholding payments.
part of net income
means so much of the net income, or of that part of it, as is attributable to the *withholding payments.
Trust - no net income
18-25(8)
If there is no net income of the trust for the income year, the trustee is entitled to a credit equal to the sum of the *amounts withheld from the *withholding payments.
18-25(9)
(Repealed by No 32 of 2008 )
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