Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 6AAA - Special provisions relating to non-resident trust estates etc.  

Subdivision A - Preliminary  

SECTION 102AAB  

102AAB   INTERPRETATION  

In this Division, unless the contrary intention appears:

1 July 1990 net worth
, in relation to a trust estate, means the market value, as at the beginning of 1 July 1990, of the assets of the trust estate, reduced by the liabilities of the trust estate as at the beginning of that day.

accounts
has the same meaning as in Part X .

actual transfer
, in relation to property or services, means a transfer of the property or services other than a transfer that is taken to have been made because of subsection 102AAK(1) , (2) , (5) , (6) , (8) , (10) or (11) .

approved form
(Repealed by No 4 of 2007)

arm ' s length amount
, in relation to an actual transfer of property or services to a trust estate, means the amount that the trustee could reasonably be expected to have been required to pay to obtain the property or the services concerned from the transferor under a transaction where the parties to the transaction are dealing with each other at arm ' s length in relation to the transaction.

associate
has the same meaning as in Part X .

attributable income
, in relation to a trust estate, has the meaning given by section 102AAU .

attributable taxpayer
has the meaning given by section 102AAT .

attribution account payment
has the same meaning as in Part X .

attribution debit
has the same meaning as in Part X .

Australian entity
has the same meaning as in Part X .

Australian trust
has the same meaning as in Part X .

base interest rate
for a day has the same meaning as in section 8AAD of the Taxation Administration Act 1953 .

Broad-exemption listed country
(Repealed by No 96 of 2004)

broad-exemption listed country trust estate
(Repealed by No 96 of 2004)

CFC
has the same meaning as in Part X .

controlled foreign trust
has the same meaning as in Part X .

corporate unit trust
(Repealed by No 53 of 2016)

de facto marriage
(Repealed by No 144 of 2008)

de facto relationship
means:

(a) a relationship between 2 persons (whether of the same sex or different sexes) that is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; or

(b) a relationship between 2 persons (whether of the same sex or different sexes) who, although not legally married to each other, live with each other on a genuine domestic basis in a relationship as a couple.

depreciation provision
means:

(a) any provision of Division 40 of the Income Tax Assessment Act 1997 (other than Subdivision 40-E ); or

(b) any provision of Division 43 of that Act.

designated concession income
has the same meaning as in Part X .

discretionary trust estate
means a trust estate where:

(a) both of the following conditions are satisfied:

(i) a person (who may include the trustee) is empowered (either unconditionally or on the fulfilment of a condition) to exercise any power of appointment or other discretion;

(ii) the exercise of the power or discretion, or the failure to exercise the power or discretion, has the effect of determining, to any extent, either or both of the following:

(A) the identities of those who may benefit under the trust;

(B) how beneficiaries are to benefit, as between themselves, under the trust; or

(b) one or more of the beneficiaries under the trust have a contingent or defeasible interest in some or all of the corpus or income of the trust estate; or

(c) the trustee of another trust estate, being a trust estate where both of the conditions in paragraph (a) are satisfied, benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the first-mentioned trust estate.

eligible designated concession income
has the same meaning as in Part X .

entity
means any of the following:

(a) a company;

(b) a partnership;

(c) a person in the capacity of trustee;

(d) any other person.

exempt income
, in relation to a trust estate, means the exempt income of the trust estate calculated as if the trustee were a taxpayer who was a resident.

IP time
means 7.30 p.m., by standard time in the Australian Capital Territory, on 12 April 1989.

listed country
has the same meaning as in Part X .

listed country
(Omitted by No 155 of 1997)

listed country trust estate
has the meaning given by section 102AAE .

listed country trust estate
(Omitted by No 155 of 1997)

net income
, in relation to a trust estate, in relation to a year of income, means:

(a) (Repealed by No 53 of 2016)

(b) if the trust estate is a public trading trust in relation to the year of income - the net income (within the meaning of Division 6C ) of the public trading trust of the year of income; or

(c) in any other case - the net income (within the meaning of Division 6 ) of the trust estate.

non-attributable year of income
, in relation to a trust estate, means a non-resident year of income of the trust estate where no amount calculated by reference to the attributable income of the trust estate of that year of income is included in the assessable income of any taxpayer under subsection 102AAZD(1) .

non-broad-exemption listed country
(Repealed by No 96 of 2004)

non-discretionary trust estate
means a trust estate other than a discretionary trust estate.

non-resident family trust
has the meaning given by section 102AAH .

non-resident trust estate
(except in section 102AAA ), in relation to a year of income, means a trust estate that is not a resident trust estate in relation to the year of income.

non-resident year of income
, in relation to a trust estate, means a year of income in relation to which the trust estate is a non-resident trust estate.

profits
includes gains, whether of an income or capital nature.

property
includes money.

public trading trust
, in relation to a year of income, means a unit trust that is a public trading trust in relation to the year of income for the purposes of Division 6C .

public unit trust
has the meaning given by section 102AAF .

resident trust estate
, in relation to a year of income, means:

(a) a resident trust estate in relation to the year of income within the meaning of Division 6 ; or

(b) a unit trust that is a public trading trust, in relation to the year of income; or

(c) a complying superannuation fund, a non-complying superannuation fund, a complying approved deposit fund, a non-complying approved deposit fund or a pooled superannuation trust in relation to the year of income.

scheme
means:

(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and

(b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.

services
includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a benefit, right, privilege, service or facility that is, or is to be, provided under:

(a) an arrangement for or in relation to:

(i) the performance of work (including work of a professional nature), whether with or without the provision of property; or

(ii) the provision of, or of the use of facilities for, entertainment, recreation or instruction; or

(iii) the conferring of benefits, rights or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or

(b) a contract of insurance; or

(c) an arrangement for or in relation to the lending of money.

spouse
(Omitted by No 135 of 1990)

subject to tax
has the same meaning as in Part X .

tax accounting period
has the same meaning as in Part X .

tax law
, in relation to a listed country or an unlisted country, has the same meaning as in Part X .

tax offset
has the same meaning as in the Income Tax Assessment Act 1997 .

transfer :

(a) in relation to property - includes dispose of (whether by assignment, declaration of trust or otherwise) or provide; and

(b) in relation to services - includes allow, confer, give, grant, perform or provide.

trust estate
, in relation to a transfer of property or services, means the trust estate or, as the case requires, the trustee of the trust estate.

underlying transfer
, in relation to a transfer of property or services to a trust estate, means:

(a) if that transfer was an actual transfer - the actual transfer; or

(b) if that transfer was taken to have been made because of subsection 102AAK(1) - the actual transfer referred to in that subsection; or

(c) if that transfer was taken to have been made because of subsection 102AAK(2) - the actual transfer referred to in paragraph 102AAK(2)(d) ; or

(d) if that transfer was taken to have been made because of subsection 102AAK(5) - the actual transfer referred to in paragraph 102AAK(5)(b) ; or

(e) if that transfer was taken to have been made because of the application of subsection 102AAK(6) or (8) to an actual transfer - the actual transfer; or

(f) if that transfer was taken to have been made because of the application of subsection 102AAK(6) or (8) to a transfer that was taken to have been made because of subsection 102AAK(1) - the actual transfer referred to in subsection 102AAK(1) ; or

(g) if that transfer was taken to have been made because of the application of subsection 102AAK(6) or (8) to a transfer that was taken to have been made because of subsection 102AAK(5) - the actual transfer referred to in paragraph 102AAK(5)(b) ; or

(h) if that transfer was taken to have been made because of subsection 102AAK(10) - the actual transfer referred to in paragraph 102AAK(10)(b) ; or

(j) if that transfer was taken to have been made because of one or more applications of subsection 102AAK(11) to an actual transfer - the actual transfer; or

(k) if that transfer was taken to have been made because of one or more applications of subsection 102AAK(11) to a transfer (in this paragraph called the deemed transfer ) that was taken to have been made because of subsection 102AAK(1) , (2), (5), (6), (8) or (10) - the actual transfer that, under a preceding paragraph of this definition, is the underlying transfer in relation to the deemed transfer.

underlying transferor
, in relation to a transfer of property or services to a trust estate, means the entity who made the underlying transfer concerned.

unlisted country
has the same meaning as in Part X .

weighted statutory interest rate
, in relation to a year of income, means:

(a) if there is only one base interest rate in relation to the year of income - that rate; or

(b) if there are 2 or more base interest rates in relation to the year of income - the weighted average of the base rates for the year of income.