Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 102UK

  (1)   Subject to subsection   (2A), this section applies if:

  (a)   a share of the net income of a closely held trust for a year of income is included in the assessable income of a trustee beneficiary of the trust under section   97; and

  (b)   the share comprises or includes an untaxed part; and

  (c)   the trustee of the closely held trust is not covered by a determination under subsection   (1A) for the year of income; and

  (ca)   the closely held trust is none of the following:

  (i)   a family trust (within the meaning of section   272 - 75 in Schedule   2F);

  (ii)   a trust in relation to which an interposed entity election has been made and is in force in accordance with section   272 - 85 in Schedule   2F;

  (iii)   a trust covered by subsection   272 - 90(5) in Schedule   2F; and

  (d)   during the TB statement period in relation to the year of income, the trustee of the closely held trust does not make and give to the Commissioner a correct TB statement about the share.

Determination that a class of trustees is not required to give a correct TB statement

  (1A)   The Commissioner may, by legislative instrument, determine that a specified class of trustees is not required to make a correct TB statement for a year of income.

  (1B)   A determination under subsection   (1A):

  (a)   may be expressed to be subject to conditions; and

  (b)   may be for one or more years of income.

Consequences of section applying

  (2)   If this section applies:

  (a)   either:

  (i)   if the trustee of the closely held trust is the only person in the trustee group (see subsection   (3))--the trustee is liable to pay tax; or

  (ii)   if the trustee of the closely held trust is not the only person in the trustee group--the persons in the trustee group are jointly and severally liable to pay tax;

    as imposed by the Taxation (Trustee Beneficiary Non - disclosure Tax) Act (No.   1) 2007 , on the untaxed part; and

  (b)   except for the purposes of sections   99, 99A and 99B and this Division, the untaxed part   is not included in the assessable income of the trustee beneficiary under section   97.

Note:   Provisions dealing with the payment etc. of the tax under paragraph   (a) (known as trustee beneficiary non - disclosure tax) are set out in Subdivision   D.

Amendment of incorrect statement

  (2A)   If:

  (a)   during the TB statement period in relation to a year of income, the trustee of a closely held trust makes and gives to the Commissioner a statement, that the trustee believes on reasonable grounds is a correct TB statement, about a share of the net income of the trust; and

  (b)   the statement is not a correct TB statement about the share, with the result that, apart from this subsection, this section applies; and

  (c)   either:

  (i)   the trustee could not reasonably have foreseen the event that caused the statement not to be a correct TB statement; or

  (ii)   the statement is not a correct TB statement because of an inadvertent error; and

  (d)   either:

  (i)   before any trustee beneficiary non - disclosure tax becomes due and payable on the untaxed part as a result of this section applying; or

  (ii)   before the end of 4 years after any such tax becomes due and payable;

    the trustee advises the Commissioner in writing of any change that is necessary to make the statement a correct TB statement about the share;

this section does not apply, and is taken never to have applied, to the untaxed part.

Trustee group

  (3)   The trustee group consists of the following:

  (a)   the trustee of the closely held trust;

  (b)   if the trustee of the closely held trust is a company--the directors of the company.