Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 271 - Family trust distribution tax  

SECTION 271-45   REQUIREMENTS FOR SECTION 271-55 NOTICE TO FAMILY TRUST  

Notice about non-resident distributions

271-45(1)    
The Commissioner may give a notice in accordance with section 271-55 (which deals with information about distributions etc. by certain non-residents) to the trustee of a trust (the primary entity ) who has made a family trust election, provided the requirements of subsections (2) to (4) of this section are met.

First requirement

271-45(2)    
At a time (the test time ) while the election is in force (including a time before it was made), the primary entity must have conferred a present entitlement to, or distributed, income or capital upon or to a company, partnership or trust (the secondary entity ) that at the time was, because of an interposed entity election, a member of the family group of the individual (the primary individual ) specified in the family trust election.

Second requirement

271-45(3)    
When the Commissioner gives the notice:

(a) if the secondary entity is a partnership - a partner must be a non-resident; and

(b) if the secondary entity is a company - the company must be a non-resident; and

(c) if the secondary entity is a trust - either:

(i) a trustee must be a non-resident; or

(ii) the central management and control of the trust must be outside Australia.

Third requirement

271-45(4)    
The Commissioner must give the notice before the later of:

(a) 5 years after the conferral or distribution mentioned in subsection (2); and

(b) the end of the period during which the primary entity is required by section 262A to retain records in relation to the income year in which the conferral or distribution took place.