Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 115
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Discount capital gains and trusts
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net capital gains
Subdivision 115-C
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Rules about trusts with net capital gains
Operative provisions
SECTION 115-222 Assessing trustees under section 99 or 99A of the Income Tax Assessment Act 1936 115-222(1)
Subsection (2) applies if:
(a) you are the trustee of the trust estate; and
(b) section 99A of the Income Tax Assessment Act 1936 does not apply in relation to the trust estate in relation to the relevant income year.
115-222(2)
For each *capital gain of the trust estate, increase the amount (the assessable amount ) in respect of which you are liable to be assessed (and pay tax) under section 99 of the Income Tax Assessment Act 1936 in relation to the trust estate by the amount mentioned in subsection 115-225(1) .
115-222(3)
Subsection (4) applies if:
(a) you are the trustee of the trust estate; and
(b) subsection (2) does not apply.
115-222(4)
For each *capital gain of the trust estate, increase the amount (the assessable amount ) in respect of which you are liable to be assessed (and pay tax) under section 99A of the Income Tax Assessment Act 1936 in relation to the trust estate by:
(a) if the capital gain was not reduced under either step 3 of the method statement in subsection 102-5(1) (discount capital gains) or Subdivision 152-C (small business 50% reduction) - the amount mentioned in subsection 115-225(1) ; and
(b) if the capital gain was reduced under either step 3 of the method statement or Subdivision 152-C but not both (even if it was further reduced by the other small business concessions) - twice the amount mentioned in subsection 115-225(1) ; and
(c) if the capital gain was reduced under both step 3 of the method statement and Subdivision 152-C (even if it was further reduced by the other small business concessions) - 4 times the amount mentioned in subsection 115-225(1) .
115-222(5)
To avoid doubt, increase the assessable amount under subsection (2) or (4) even if the assessable amount is nil.
View history note
Hide history noteSECTION 115-222 Assessing trustees under section 99 or 99A of the Income Tax Assessment Act 1936 115-222(1)
Subsection (2) applies if:
(a) you are the trustee of the trust estate; and
(b) section 99A of the Income Tax Assessment Act 1936 does not apply in relation to the trust estate in relation to the relevant income year.
115-222(2)
For each *capital gain of the trust estate, increase the amount (the assessable amount ) in respect of which you are liable to be assessed (and pay tax) under section 99 of the Income Tax Assessment Act 1936 in relation to the trust estate by the amount mentioned in subsection 115-225(1) .
115-222(3)
Subsection (4) applies if:
(a) you are the trustee of the trust estate; and
(b) subsection (2) does not apply.
115-222(4)
For each *capital gain of the trust estate, increase the amount (the assessable amount ) in respect of which you are liable to be assessed (and pay tax) under section 99A of the Income Tax Assessment Act 1936 in relation to the trust estate by:
(a) if the capital gain was not reduced under either step 3 of the method statement in subsection 102-5(1) (discount capital gains) or Subdivision 152-C (small business 50% reduction) - the amount mentioned in subsection 115-225(1) ; and
(b) if the capital gain was reduced under either step 3 of the method statement or Subdivision 152-C but not both (even if it was further reduced by the other small business concessions) - twice the amount mentioned in subsection 115-225(1) ; and
(c) if the capital gain was reduced under both step 3 of the method statement and Subdivision 152-C (even if it was further reduced by the other small business concessions) - 4 times the amount mentioned in subsection 115-225(1) .
115-222(5)
To avoid doubt, increase the assessable amount under subsection (2) or (4) even if the assessable amount is nil.
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