Income Tax Assessment Act 1997
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View history noteSubdiv 195-C inserted by No 8 of 2022, s 3 and Sch 5 item 1, effective 1 July 2022.
SECTION 195-120 Beneficiary of a CCIV sub-fund trust has fixed entitlements to shares of income and capital of the trust 195-120(1)
A *beneficiary of a *CCIV sub-fund trust is taken to have a fixed entitlement to a share of income of the trust that the trust derives from time to time. At a particular time, that share is equal to the percentage worked out using the formula:
| Beneficiary dividends | × 100 |
| Total dividends |
where:
beneficiary dividends
is the total of the *dividends that the *beneficiary has a right to receive because of *shares that the beneficiary holds at that time and are *referable to the *sub-fund.
total dividends
is the total of all *dividends that are payable on all *shares that are on issue at that time and are *referable to the *sub-fund.
195-120(2)
A *beneficiary of a *CCIV sub-fund trust is taken to have a fixed entitlement to a share of the capital of the trust at a particular time equal to the percentage worked out using the formula:
| Beneficiary capital distribution | × 100 |
| Total capital distribution |
where:
beneficiary capital distribution
is the amount of a distribution of paid-up capital (in the event of a return of capital) that the *beneficiary has a right to receive because of *shares that the beneficiary holds at that time and are *referable to the *sub-fund.
total capital distribution
is the total distribution of paid-up capital (in that event) payable on all *shares that are on issue at that time and are *referable to the *sub-fund.
195-120(3)
A fixed entitlement that exists because of this section is taken to be a fixed entitlement within the meaning given by sections 272-5 , 272-10 , 272-15 and 272-40 in Schedule 2F to the Income Tax Assessment Act 1936 .
Note:
This is relevant to, for example, the definition of fixed entitlement in subsection 102UC(4) of the Income Tax Assessment Act 1936 .
S 195-120 inserted by No 8 of 2022, s 3 and Sch 5 item 1, effective 1 July 2022.
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