Income Tax Assessment Act 1936

Div 6 heading substituted by No 12 of 1979.

S 96C repealed by No 114 of 2010, s 3 and Sch 1 item 9, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. S 96C formerly read:

SECTION 96C CALCULATION OF BENEFICIARY ' S SHARE OF NET INCOME OF NON-RESIDENT TRUST ESTATE  
96C(1)
If all of the income, profits or gains derived by a non-resident trust estate during the year of income consisted of either or both of the following:

(a) income, profits or gains to which beneficiaries of the trust estate were presently entitled;

(b) income, profits or gains to which beneficiaries of the trust estate were not presently entitled but which were distributed to beneficiaries of the trust estate during the year of income or within 2 months after the end of the year of income;

the share of a taxpayer referred to in section 96B of the net income of the trust estate of the year of income is the amount worked out using the formula:

Net income   ×   Attribution percentage

In the formula:

Net income means the net income of the trust estate of the year of income.

Attribution percentage means the percentage of the total income, profits and gains derived by the trust estate during the year of income to which the taxpayer was presently entitled or to which the taxpayer was not presently entitled but which was distributed to the taxpayer during the year of income or within 2 months after the end of the year of income.

96C(2)
If subsection (1) does not apply in respect of a non-resident trust estate of the year of income, the share of a taxpayer referred to in section 96B of the net income of the trust estate of the year of income is the amount determined by calculating:

(a) the part of the taxpayer ' s share of the net income that is attributable to any interest or interests in the trust estate that the taxpayer had in the trust estate throughout the whole of the year of income; and

(b) the part or parts of the taxpayer ' s share of the net income that is or are attributable to any interest or interests in the trust estate that the taxpayer had throughout a particular part or particular parts of the year of income;

and adding up the amounts so calculated.

96C(3)
The part of the taxpayer ' s share of the net income that is attributable to an interest or interests that the taxpayer had throughout the whole of the year of income is the amount worked out using the formula:

Net income   ×   Attribution percentage

96C(4)
The part of the taxpayer ' s share of the net income that is attributable to an interest that the taxpayer had throughout a particular part of the year of income is the amount worked out using the formula:

Net income

×

Attribution percentage

×

Number of days held         Total number of days

96C(5)
For the purposes of the formulas in subsections (3) and (4):

Net income
means the net income of the trust estate of the year of income.

Note:

See subsection (5A).

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History

S 96C(5) (note) inserted by No 163 of 2001.

Attribution percentage
means:

(a) the percentage of the income of the trust estate represented by the share of the income to which the taxpayer was entitled, or was entitled to acquire, at the test time because of:

(i) the taxpayer ' s interest or interests in the trust estate; and

(ii) any interest or interests in the trust estate that the taxpayer was entitled to acquire; or

(b) the percentage of the corpus of the trust estate represented by the share of the corpus to which the taxpayer was entitled, or was entitled to acquire, at the test time because of:

(i) the taxpayer ' s interest or interests in the trust estate; and

(ii) any interest or interests in the trust estate that the taxpayer was entitled to acquire;

or, if those percentages differ, the greater of those percentages.

Number of days held
means the number of days in the part of the year of income throughout which the taxpayer had the interest.

Total number of days
means the number of days in the year of income.

the test time
means:

(a) if the taxpayer had an interest or interests in the trust estate at the end of the year of income - the end of the year of income; or

(b) if the taxpayer ceased during the year of income to have any interest in the trust estate - the time immediately before the taxpayer ceased to have such an interest.

96C(5A)
In calculating the net income of the trust estate of the year of income for the purposes of subsections (3), (4) and (5), disregard:

(aa) Division 230 of the Income Tax Assessment Act 1997 ; and

(a) Division 974 of the Income Tax Assessment Act 1997 ; and

(b) the operation of any provision of this Act to the extent to which that operation depends on an expression whose meaning is given by that Division.

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S 96C(5A) amended by No 15 of 2009, s 3 and Sch 1 item 34, by inserting para (aa), effective 26 March 2009.

S 96C(5A) inserted by No 163 of 2001.

96C(6)
If, apart from this subsection, the sum of the attribution percentages at a particular time in relation to a non-resident trust estate of all taxpayers who are residents would exceed 100%, the attribution percentage of each of those taxpayers is the percentage worked out using the formula:

Individual percentage       Total percentage

× 100

where:

Individual percentage means the percentage that, apart from this subsection, would be the attribution percentage of the taxpayer concerned.

Total percentage means the sum of the percentages that, apart from this subsection, would be the attribution percentages of all taxpayers that are residents.

Note:

A temporary resident is taken not to be a resident for the purposes of this subsection: see section 768-975 of the Income Tax Assessment Act 1997 .

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S 96C(6) amended by No 32 of 2006, s 3 and Sch 1 item 4, by inserting the note at the end, effective 6 April 2006.

96C(7)
For the purposes of subsection (5):

(a) the percentage of the income of the trust estate represented by the share of the income to which the taxpayer was entitled, or was entitled to acquire, at the test time because of the interest or interests referred to in subparagraph (a)(i) or (ii) of the definition of attribution percentage in that subsection; or

(b) the percentage of the corpus of the trust estate represented by the share of the corpus to which the taxpayer was entitled, or was entitled to acquire, at the test time because of the interest or interests referred to in subparagraph (b)(i) or (ii) of the definition of attribution percentage in that subsection;

is to be worked out by:

(c) ascertaining whichever of the following is applicable:

(i) the income of the trust estate for the year of income;

(ii) the corpus of the trust estate as at the end of the year of income; and

(d) assuming that the share to which the taxpayer was entitled, or became entitled to acquire, at the test time because of the interest or interests was the same at all other times during the year of income; and

(e) ascertaining the percentage concerned:

(i) if the test time is a time other than the end of the year of income - at the end of the year of income instead of at the test time; and

(ii) on that assumption.

96C(8)
In this section:

entitled to acquire
has the same meaning as in Part XI.

96C(9)
A reference in this section to income, profits or gains having been distributed to a beneficiary of a trust estate is a reference to an amount included in such income, profits or gains having been paid or credited to, or applied for the benefit of, such a beneficiary.

S 96C inserted by No 190 of 1992.