Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS

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Division 152 - Small business relief

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Subdivision 152-A - Basic conditions for relief under this Division

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Nomination of controllers of discretionary trust

SECTION 152-78 Trustee of discretionary trust may nominate beneficiaries to be controllers of trust

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152-78(1)
This section applies for the purposes of determining whether an entity is *connected with you, for the purposes of:

(a) this Subdivision; and

(b) sections 328-110 , 328-115 and 328-125 so far as they relate to this Subdivision.

152-78(2)
The trustee of a discretionary trust may nominate not more than 4 beneficiaries as being controllers of the trust for an income year (the relevant income year ) for which the trustee did not make a distribution of income or capital if the trust had a *tax loss, or no *net income, for that year.

152-78(3)
A nomination under subsection (2) has effect as if each nominated beneficiary controlled the trust for the relevant income year in a way described in section 328-125 .

Note:

This means each nominated beneficiary is connected with the trust.

152-78(4)
A nomination under subsection (2) must:

(a) be in writing; and

(b) be signed by the trustee and by each nominated beneficiary.

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History

S 152-78 inserted by No 41 of 2011, s 3 and Sch 5 item 102, effective 27 June 2011. No 41 of 2011, s 3 and Sch 5 item 105 contains the following application provisions:

105 Application and transitional provisions
Application provision

(1)
Section 152-78 of the Income Tax Assessment Act 1997 applies:

(a) for the purposes of the following provisions relating to CGT events that happen on or after the day this Act receives the Royal Assent:

(i) Subdivision 152-A of that Act;

(ii) sections 328-110 , 328-115 and 328-125 of that Act so far as they relate to that Subdivision; and

(b) for the purposes of the following provisions (and not any other provisions of Subdivision 152-A of that Act) relating to CGT events that happen before the day this Act receives the Royal Assent but after the start of the 2007-08 income year:

(i) paragraph 152-10(1A)(a) of that Act;

(ii) another provision of that Subdivision so far as the provision relates to that paragraph;

(iii) sections 328-110 , 328-115 and 328-125 of that Act so far as they relate to a provision covered by subparagraph (i) or (ii) of this paragraph.

Note:

Section 152-78 of the Income Tax Assessment Act 1997 does not apply for the purposes of a provision of Subdivision 152-A of that Act that is not covered by subparagraph (1)(b)(i) or (ii) of this item relating to CGT events that happen between the start of the 2007-08 income year and the day this Act receives the Royal Assent.

(2)
The repeal of section 152-42 of the Income Tax Assessment Act 1997 applies for the purposes of subparagraph 152-40(1)(a)(iii) or paragraph 152-40(1)(b) of that Act relating to CGT events that happen on or after the day this Act receives the Royal Assent.

Extension of time to make choice

(3)
Subitem (4) applies in relation to:

(a) a CGT event that happened before the day this Act receives the Royal Assent; and

(b) an entity that becomes eligible to make a choice under Division 152 of the Income Tax Assessment Act 1997 in relation to that event because of the satisfaction of the conditions in subsection 152-10(1A) of that Act because of this Part.

(4)
Despite subsection 103-25(1) of the Income Tax Assessment Act 1997 , any such choice by the entity must be made by the latest of:

(a) the day the entity lodges its income tax return for the income year in which the relevant CGT event happened; and

(b) 12 months after the day this Act receives the Royal Assent; and

(c) a later day allowed by the Commissioner of Taxation.

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