Part 1— Income Tax Assessment Act 1936
1 Paragraph 26(b)
Omit "and" (last occurring).
2 At the end of paragraph
26(b)
Add:
or (iii) amounts on which ultimate beneficiary non-disclosure tax is payable
under Division 6D; and
3 At the end of subparagraph 47A(18)(d)(ii)
Add:
or (G) the trustee of a
trust estate where ultimate beneficiary non-disclosure tax is payable under
Division 6D on the whole or part of the net income of the trust estate;
4 At
the end of paragraph 47A(18)(d)
Add:
- (vi)
- if sub-subparagraph (ii)(G)
applies:
(A) the trust estate was a resident trust estate (within the meaning of
Division 6) in relation to the assessment year of income; and
(B) the whole or a part (which whole or part is in this
subsection also called the actual taxpayer's portion of
the original assessable amount ) of the whole or the part
of the share of the net income is attributable (either
directly or indirectly through one or more interposed
partnerships or trusts) to the original assessable
amount;
5 After subsection 86(2)
Insert:
- (2A)
- This
section does not apply in working out a share of the net
income of a closely held trust for the purposes of
applying paragraph 102UK(2)(a) or 102UM(2)(a) (which
deals with ultimate beneficiary non-disclosure tax).
However, this subsection does not as a result affect the
way in which a share of the net income of a closely held
trust is worked out for the purposes of applying
paragraph 102UK(2)(b) or 102UM(2)(b).
6 Subsection 102AAE(2)
Omit "either of", substitute "one of".
7 After
paragraph 102AAE(2)(b)
Insert:
- (c)
- both of the following conditions are
satisfied:
- (i)
- ultimate beneficiary non-disclosure tax is payable under Division 6D on
the whole or part (the net income amount ) of a share of the net income of the
trust estate of the trust's year of income;
- (ii)
- the whole or part of the net income amount is attributable to the item
part;
8 After subsection 102AAM(4)
Insert:
- (4A)
- If:
- (a)
- paragraph 102UK(2)(b) or 102UM(2)(b) has the effect that the whole or a
part of a share of the net income of a trust estate (the first trust estate )
is not included in the assessable income of the trustee of another trust
estate (the second trust estate ); and
- (b)
- the whole or the part of the share (which whole or part is in this
subsection called the taxpayer's portion of the distributed amount of the
non-resident trust's year of income ) is attributable (either directly or
indirectly through one or more interposed partnerships or trusts) to the
distributed amount of the non-resident trust's year of income; and
- (c)
- if paragraph 102UK(2)(b) or 102UM(2)(b) were ignored, the second trust
estate would be an interposed trust mentioned in applying subparagraph
(4)(b)(iii) or (iv) of this section; and
- (d)
- this subsection does not also apply to the trustee of a trust interposed
between the first trust estate and the non-resident trust;
the trustee of the first trust estate is liable to pay interest to the
Commissioner in respect of the taxpayer's portion of the distributed amount of
the non-resident trust's year of income, calculated under subsection (5), on
the amount calculated using the formula:
where:
applicable rate of tax has the meaning given by subsection (10).
FTC [Foreign tax credit] means so much of any credit under Division 18 to
which the trustee of the first trust would be entitled, in respect of the
taxpayer's portion of the distributed amount of the non-resident trust's year
of income, if the taxpayer's portion of the distributed amount of the
non-resident trust's income were an amount in respect of which the trustee
were liable to be assessed and to pay tax under section 99A.
taxpayer's portion of the distributed amount means the taxpayer's portion of
the distributed amount of the non-resident trust's year of income.
9 At the end of subparagraph 102AAU(1)(c)(i)
Add:
(C) on which ultimate
beneficiary non-disclosure tax is payable under Division 6D; or
10 At the end
of subsection 128B(3)
Add:
; or (l) income derived by a trustee that, because of paragraph 102UK(2)(b) or
102UM(2)(b), is not included in the assessable income of a trustee beneficiary
of the trust estate.
11 Subsection 170(10)
After "section 100A,", insert "Subdivision C of
Division 6D of Part III, section".
12 Application
(1) The amendments made by
items 1 to 7 and 9 apply to ultimate beneficiary non-disclosure tax that
becomes payable at any time after the commencement of this Part.
(2) The
amendment made by item 8 applies to net income of a trust estate of the year
of income in which 13 August 1998 occurred, and all later years of income.
(3) The amendment made by item 10 applies to income derived either before or
after the commencement of this Part.
Part 2— Income Tax Assessment Act 1997
13 After paragraph 42-295(3)(b)
Insert:
- (ba)
- you are the trustee of a
trust, ultimate beneficiary non-disclosure tax is payable under Division 6D of
Part III of that Act (provisions relating to certain closely held trusts) on
the whole or a part of a share of the net income of the trust and the amount
mentioned in paragraph (2)(b) is included in that whole or part; or
14 Application
The amendment made by this Part applies to assessments for the
income year in which 13 August 1998 occurred, and all later income years.
Part 3— Superannuation Contributions Tax (Assessment and Collection) Act
1997
15 Section 43 (paragraph (aa) of the definition of adjusted taxable income )
Omit "subsection 271-105(1) of Schedule 2F to", substitute "paragraphs
102UK(2)(b) and 102UM(2)(b) of, and subsection 271-105(1) of Schedule 2F to,".
16 Application
The amendment made by this Part applies to the calculation of
adjusted taxable income for the financial year that began on 1 July 1998 or a
later financial year.
[ Minister's second reading speech made in—
House of Representatives on 13 May 1999
Senate on 21 June 1999 ]
(84/99)
Commonwealth Numbered Acts