Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 276.265

General taxability and residence assumptions to be made

  (1)   Work out the amount of the * trust component of each character in relation to the * AMIT assuming that the AMIT's trustee:

  (a)   was liable to pay * tax; and

  (b)   was an Australian resident.

Trust components of assessable income character are net of deductions

  (2)   The sum of all of the * trust components of a character relating to assessable income of the * AMIT for the income year equals the total assessable income of the AMIT for the income year, reduced by all deductions of the AMIT for the year. To avoid doubt, for the purposes of this subsection, apply subsection   (1).

  (3)   However, if that total assessable income does not exceed those deductions, the amount of each * trust component of a character relating to assessable income of the * AMIT for the income year is nil.