Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 271 - Family trust distribution tax  

SECTION 271-50   REQUIREMENTS FOR SECTION 271-55 NOTICE TO INTERPOSED ENTITY  

Notice about non-resident distributions

271-50(1)    
If:

(a) a company, the trustee of a trust or the partners in a partnership (which company, trust or partnership is the primary entity ) makes an interposed entity election to be included in the family group of an individual specified in a family trust election; and

(b) the requirements of subsections (2) to (4) are met;

the Commissioner may give the company, trustee or partners a notice in accordance with section 271-55 (which deals with information about distributions etc. by certain non-residents).

First requirement

271-50(2)    
At a time (the test time ) while the election was 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 (a secondary entity ), where the secondary entity:

(a) was the family trust whose trustee made the family trust election; or

(b) was, because of an interposed entity election that was in force at the time, included in the family group of the individual (the primary individual ) specified in the family trust election.

Second requirement

271-50(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

271-50(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.