Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-E - Payments where TFN or ABN not quoted  

Payment of income of closely held trust where TFN not quoted

SECTION 12-180   BENEFICIARY BECOMES PRESENTLY ENTITLED TO INCOME OF CLOSELY HELD TRUST  

Scope

12-180(1)    
This section applies if:

(a) at the end of an income year of a trust, a beneficiary of the trust is presently entitled, for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936 , to a share of the income of the trust of that year; and

(b) paragraph 12-175(1)(c) in this Schedule applies to the trustee of the trust; and

(c) paragraph 12-175(1)(d) applies to the beneficiary.

Trustee must withhold

12-180(2)    
The trustee must withhold an amount from that share of the *net income of the trust, if:

(a) the beneficiary did not *quote the beneficiary ' s *tax file number to the trustee before the end of the year; and

(b) the trustee is not liable to pay tax in respect of that share under section 98 of the Income Tax Assessment Act 1936 ; and

(c) the trustee is not required to make a correct TB statement about that share under Division 6D of Part III of that Act (about trustee beneficiary non-disclosure tax); and

(d) family trust distribution tax is not payable on that share of the income of the trust under Schedule 2F to that Act.

Note 1:

If the trust is a unit trust, the trustee may be required to withhold under section 12-145 in priority to this section: see section 12-5 .

Note 2:

The trustee commits an offence if the trustee fails to withhold an amount as required by this section: see section 16-25 .

Application of rest of Part

12-180(3)    
This Part (other than section 12-175 ) applies as if the trustee had paid that share of the *net income of the trust to the beneficiary at the end of the income year.

Entitlements already paid

12-180(4)    
Subsections (2) and (3) do not apply to that share of the *net income of the trust to the extent that the trustee distributed any of that share to the beneficiary during the income year.

Note:

The trustee may have been required to withhold from that distribution under section 12-175 .

Trusts that end during the year

12-180(5)    
This section applies as if each reference to the end of an income year were a reference to the time occurring just before the trust ends, if the trust ends during the income year.