PART III
-
LIABILITY TO TAXATION
Division 6
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Trust income
History
Div 6 heading substituted by No 12 of 1979.
SECTION 98A
NON-RESIDENT BENEFICIARIES ASSESSABLE IN RESPECT OF CERTAIN INCOME
98A(1)
Where the trustee of a trust estate is assessed and is liable to pay tax in respect of the whole or a part of a share of the net income of a trust estate of a year of income in pursuance of subsection
98(3)
, the assessable income of the beneficiary who is presently entitled to that share of the income of the trust estate shall include:
(a)
so much of the individual interest of the beneficiary in the net income of the trust estate as is attributable to a period when the beneficiary was a resident; and
(b)
so much of the individual interest of the beneficiary in the net income of the trust estate as is attributable to a period when the beneficiary was not a resident and is also attributable to sources in Australia.
History
S 98A(1) amended by No 62 of 2011, s 3 and Sch 2 item 29, by repealing the note at the end, effective 29 June 2011. For application provisions see note under s
95AAA
. The note formerly read:
Note:
If the trust estate's net income includes a net capital gain, Subdivision
115-C
of the
Income Tax Assessment Act 1997
also affects the assessment of the beneficiary.
S 98A(1) amended by
No 79 of 2007
, s 3 and Sch 9 item 2, by omitting
"
or (4)
"
after
"
98(3)
"
, applicable in relation to income years starting on or after 1 July 2006.
S 98A(1) note inserted by No 169 of 1999.
98A(2)
Where the trustee of a trust estate is assessed and is liable to pay tax in respect of the whole or a part of a share of the net income of a trust estate of a year of income in pursuance of subsection
98(3)
:
(a)
there shall be deducted from the income tax assessed against the beneficiary the amount (in this subsection referred to as the
relevant amount
) of the tax paid by the trustee in respect of the beneficiary's interest in the net income of the trust estate; and
(b)
if the relevant amount is greater than the amount of the income tax assessed against the beneficiary
-
the Commissioner shall pay to the beneficiary an amount equal to the difference between those 2 amounts.
Note:
See Division
3A
of Part
IIB
of the
Taxation Administration Act 1953
for the rules about how the Commissioner must pay the entity. Division
3
of Part
IIB
allows the Commissioner to apply the amount owing as a credit against tax debts that the entity owes to the Commonwealth.
History
S 98A(2) amended by No 34 of 2014, s 3 and Sch 2 item 13 by omitting
"
, and section 105-65 in Schedule 1 to,
"
before
"
the
Taxation Administration Act 1953
"
from the note, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 98A(2) amended by No 62 of 2011, s 3 and Sch 2 items 30 and 31, by substituting
"
Where the trustee of a trust estate is assessed and is liable to pay tax in respect of the whole or a part of a share of the net income of a trust estate of a year of income in pursuance of subsection 98(3)
"
for
"
Where subsection (1) applies in relation to a beneficiary in relation to a year of income
"
and omitting
"
(including, for a beneficiary that is a company, any tax paid in respect of that interest because of section 115-220 of the
Income Tax Assessment Act 1997
)
"
from the end of para (a), effective 29 June 2011. For application provisions see note under s
95AAA
.
S 98A(2) amended by
No 79 of 2007
, s 3 and Sch 9 item 3, by inserting
"
(including, for a beneficiary that is a company, any tax paid in respect of that interest because of section 115-220 of the
Income Tax Assessment Act 1997
)
"
in para (a), applicable in relation to income years starting on or after 1 July 2006.
S 98A(2) amended by No 73 of 2006, s 3 and Sch 5 item 154, by substituting
"
of, and section 105-65 in Schedule 1 to,
"
for
"
and section 39 of
"
in the note, effective 1 July 2006.
S 98A(2) amended by No 91 of 2000.
98A(3)
If a beneficiary of a trust estate who is presently entitled to a share of the income of the trust estate:
(a)
is not, in respect of that share of the income of the trust estate, a beneficiary in the capacity of a trustee of another trust estate; and
(b)
is a non-resident at the end of the year of income;
the assessable income of the beneficiary includes so much of the individual interest of the beneficiary in the net income of the trust estate as is reasonably attributable to a part of the net income of another trust estate in respect of which the trustee of the other trust estate is assessed and is liable to pay tax under subsection
98(4)
.
History
S 98A(3) amended by No 62 of 2011, s 3 and Sch 2 item 32, by repealing the note at the end, effective 29 June 2011. For application provisions see note under s
95AAA
. The note formerly read:
Note:
If the trust estate's net income includes a net capital gain, Subdivision
115-C
of the
Income Tax Assessment Act 1997
also affects the assessment of the beneficiary.
S 98A(3) inserted by
No 79 of 2007
, s 3 and Sch 9 item 4, applicable in relation to income years starting on or after 1 July 2006.
98A(4)
To the extent that subsection (3) includes an amount in the assessable income of a beneficiary of a trust estate, the amount is not included by subsection (1) or section
100
.
History
S 98A(4) inserted by
No 79 of 2007
, s 3 and Sch 9 item 4, applicable in relation to income years starting on or after 1 July 2006.
S 98A inserted by No 14 of 1983.
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