Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 6E - Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits  

SECTION 102UY   INTERPRETATION  

102UY(1)    
Expressions used in this Division have the same meaning as in Division 6 .

102UY(2)    
The Division 6E income , of the trust estate, is the income of the trust estate worked out on the assumption that amounts attributable to the things mentioned in paragraph 102UW(b) were disregarded. The Division 6E income of the trust estate cannot be less than nil.

102UY(3)    
The Division 6E net income , of the trust estate, is the net income of the trust estate worked out on the assumption that the things mentioned in paragraph 102UW(b) were disregarded. The Division 6E net income of the trust estate cannot be less than nil.

102UY(4)    
A beneficiary of the trust estate has an amount of a Division 6E present entitlement to the income of the trust estate that is equal to the amount of the beneficiary ' s present entitlement to the income of the trust estate, decreased by:

(a) for each capital gain taken into account as mentioned in paragraph 102UW(b) - so much of the beneficiary ' s share of the capital gain as was included in the income of the trust estate; and

(b) for each franked distribution taken into account as mentioned in paragraph 102UW(b) - so much of the beneficiary ' s share of the franked distribution as was included in the income of the trust estate.

102UY(5)    
The following expressions in this Division have the same meaning as in the Income Tax Assessment Act 1997 :

(a) share of a capital gain (see section 115-227 of that Act);

(b) share of a franked distribution (see section 207-55 of that Act).