Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 152.78

Trustee of discretionary trust may nominate beneficiaries to be controllers of trust

  (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.

  (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.

  (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.

  (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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