INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 6AAA - Special provisions relating to non-resident trust estates etc.  

Subdivision C - Winding-up of non-resident trust estates in existence on 12 April 1989  

SECTION 102AAP  

102AAP   WINDING-UP OF NON-RESIDENT DISCRETIONARY TRUSTS - ADJUSTMENT OF TAX TREATMENT OF BENEFICIARIES  
Where:

(a) the trustee of a trust estate has a discretion to pay or apply income of the trust estate to or for the benefit of specified beneficiaries; and

(b) the trust estate is completely wound up before 30 June 1991; and

(c) the trustee exercises the trustee's discretion in favour of a beneficiary:

(i) in the course of that winding-up; and

(ii) during a year of income mentioned in subparagraph 102AAN(1)(a)(i) , (ii) or (iii); and

(iii) after the IP time; and

(d) under section 101 , the beneficiary is taken to be presently entitled to the amount (in this subsection called the distributed amount ) paid to the beneficiary or applied to the beneficiary's benefit by the trustee in the exercise of that discretion; and

(e) the conditions set out in subparagraph 102AAN(1)(a)(iv) and paragraphs 102AAN(1)(b), (c) and (e) are satisfied in relation to the trust estate;

the following provisions have effect:

(f) neither section 97 nor 98 is taken to have applied in relation to the beneficiary's present entitlement to the distributed amount;

(g) the distributed amount is taken to have been included in the assessable income of the beneficiary of the taxpayer's year of income under section 99B .