Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 269 - Concepts and tests applied in Divisions 266 and 267  

Subdivision 269-D - Pattern of distributions test  

SECTION 269-65   TEST YEAR DISTRIBUTION OF INCOME OR CAPITAL  

Test year distribution of income

269-65(1)    

A test year distribution of income is the total of all distributions of income made by the trust in any of the following periods, provided the period does not begin more than 6 years before the beginning of the income year:

(a) the period from the beginning of the income year until 2 months after its end;

(b) if the trust distributed income before the trigger year (see subsection (2)) - the income year, before the trigger year, that is closest to the trigger year;

(c) if paragraph (b) does not apply and the trust distributed income in the trigger year - the trigger year;

(d) if neither paragraph (b) nor paragraph (c) applies - the income year, closest to the trigger year, in which the trust distributed income;

(e) each intervening income year (if any) between the one in paragraph (a) and the one in paragraph (b), (c) or (d).

Trigger year

269-65(2)    
If this Subdivision is being applied for the purposes of section 267-20 , the trigger year is the loss year mentioned in that section. If it is being applied for the purposes of section 267-25 , the trigger year is the year in which the debt mentioned in that section was incurred.

Test year distribution of capital

269-65(3)    
Subsection (1) applies in the same way to distributions of capital made by the trust, to determine what is a test year distribution of capital .