INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1AA - Reportable payments system (RPS)  

Subdivision L - Tax credits for deductions from reportable payments  

SECTION 220AZB   ENTITLEMENT TO CREDIT - PAYEE A TRUSTEE  

220AZB(1)   When section applies.  

This section applies if any deductions are made under this Division from reportable payments made during a year of income to a trustee of a trust estate.

220AZB(2)   Trusts - section 97 .  

If:

(a) a share of the net income of the trust estate is included in the assessable income of a beneficiary in the trust estate under section 97 , being a share that is wholly or partly attributable to the reportable payments; and

(b) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the beneficiary in relation to the year of income;

the beneficiary is entitled to a credit equal to the amount worked out using the formula:

Deductions

×

Share of net income             Net income

where:

`` Deductions '' means the sum of the deductions;

`` Share of net income '' means so much of the share of the net income of the trust estate as is attributable to the reportable payments;

`` Net income '' means so much of the net income of the trust estate as is attributable to the reportable payments.

220AZB(3)   Trusts - section 98 .  

If:

(a) the trustee is liable to be assessed under section 98 in respect of a share of the net income of the trust estate to which a beneficiary is presently entitled, being a share that is wholly or partly attributable to the reportable payments; and

(b) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the trustee in respect of that share;

the trustee is entitled to a credit equal to the amount worked out using the formula:

Deductions

×

Share of net income             Net income

where:

`` Deductions '' means the sum of the deductions;

`` Share of net income '' means so much of the share of the net income of the trust estate as is attributable to the reportable payments;

`` Net income '' means so much of the net income of the trust estate as is attributable to the reportable payments.

220AZB(4)   Trusts - section 99 or 99A .  

If:

(a) the trustee is liable to be assessed under section 99 or 99A in respect of the net income, or a part of the net income, of the trust estate and that net income or part is wholly or partly attributable to the reportable payments; and

(b) an assessment has been made of the tax payable, or the Commissioner is satisfied that no tax is payable, by the trustee under those sections in respect of that net income or part;

the trustee is entitled to a credit equal to the amount worked out using the formula:

Deductions

×

Part of net income         Net income

where:

`` Deductions '' means the sum of the deductions;

`` Part of net income '' means so much of the net income or part of the net income in respect of which the trustee is so liable to be assessed as is attributable to the reportable payments;

`` Net income '' means so much of the net income of the trust estate as is attributable to the reportable payments.

220AZB(5)   Trusts - no net income.  

If there is no net income of the trust estate of the year of income, the trustee is entitled to a credit equal to the sum of the deductions.