Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 4 - Attribution accounts  

SECTION 365   ATTRIBUTION ACCOUNT PAYMENT  

365(1)    
Each of the following is an attribution account payment:

(a) a dividend paid by a company to a shareholder;

(b) the individual interest of a partner in the net income (within the meaning of section 90) of a partnership of a year of income;

(c) where a beneficiary of a trust is presently entitled to a share of the income of the trust - that share of the net income (within the meaning of section 95 ) of the trust of a year of income;

(ca) where a beneficiary of a trust is specifically entitled to an amount of a capital gain or a franked distribution of the trust for a year of income:

(i) in the case of a capital gain - the amount mentioned in subsection 115-225(1) in respect of the beneficiary; or

(ii) in the case of a franked distribution - the amount mentioned in subsection 207-37(1) in respect of the beneficiary;

to the extent that it is not covered under paragraph (c);

(d) the whole or part of the net income of a trust of a year of income that is assessable to the trustee under section 99 or 99A ;

(e) an amount of trust property that would be included in the assessable income of a beneficiary of a year of income under section 99B if:

(i) the beneficiary were a resident, within the meaning of section 6 , at a time during the year of income; and

(ii) paragraph 99B(2)(c) were replaced by a paragraph referring to any attribution account payment under paragraph (c) or (d) of this subsection.

365(2)    
The attribution account payment is taken to be made:

(a) in a paragraph (1)(b) case - by the partnership to the partner; and

(b) in a paragraph (1)(c) or (e) case - by the trust to the beneficiary; and

(c) in a paragraph (1)(d) case - by the trust to the trustee;

and, in any such case, to be made at the end of the year of income.

365(3)    
Where:

(a) an attribution credit arises for a company in relation to a taxpayer under paragraph 371(1) (b) as a result of a change of residence whereby the company becomes a Part X Australian resident; and

(b) the company makes an attribution account payment consisting of a frankable distribution that has been franked in accordance with section 202-5 of the Income Tax Assessment Act 1997 , or that has been franked with an exempting credit in accordance with section 208-60 of that Act; and

(c) immediately before the attribution account payment is made, there is an attribution surplus for the company in relation to the taxpayer that is attributable to the attribution credit;

then, for the purposes of applying section 23AI and Divisions 4 and 5 of this Part in relation to the taxpayer, the attribution account payment is taken to be reduced to the extent that it is franked.