Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 271 - Family trust distribution tax  

SECTION 271-105   AMOUNTS SUBJECT TO FAMILY TRUST DISTRIBUTION TAX NOT ASSESSABLE  

271-105(1)    
If:

(a) family trust distribution tax (the tax payable ) becomes payable under any of sections 271-15 to 271-30 and 271-55 on the amount or value of income or capital of a company, partnership or trust; and

(b) a payment (the tax payment amount ) of the whole or part of the tax payable is made, or a reduction (also the tax payment amount ) in the whole or part of the tax payable takes place under paragraph 271-70(b) ; and

(c) taking into account any previous application of this subsection, the whole or part of the amount or value of the income or capital is included in the assessable income of the company, partnership or trust or of any other person;

the amount included in the assessable income is reduced by the amount worked out using the formula in subsection (2).

271-105(2)    
The formula is:

Tax payment amount Tax payable

×   Original assessable amount

The original assessable amount is so much of the amount or value of the income or capital as, disregarding any previous reductions under this section, is included in the assessable income of the company, partnership or trust or of any other person.

271-105(3)    
The amount of the reduction is not assessable income and is not exempt income.