Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 207 - Effect of receiving a franked distribution  

Subdivision 207-E - Exceptions to the rules in Subdivision 207-D  

Exempt institutions

SECTION 207-134  

207-134   Entity ' s present entitlement disregarded in certain circumstances  

The present entitlement of a beneficiary of a trust to a share of trust income is disregarded for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936 if:

(a) the beneficiary has claimed a *tax offset under section 207-45 or 207-110 of this Act on the basis that the beneficiary was an *exempt institution that was eligible for a refund in relation to a *trust share amount that is that share of trust income; but

(b) the beneficiary was not entitled to that tax offset because of the operation of section 207-120 , 207-122 , 207-124 or 207-126 in respect of a *distribution event, or an *arrangement, to which the trust share amount is related.

Note:

This means that the trustee of the trust is liable to pay income tax on that share of the trust income.