Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 276.325

Section applies to trust component of assessable income character

  (1)   This section applies if the * trust component is of a character relating to assessable income.

Cross - character allocation amount decreases trust component

  (2)   If the * AMIT has a * cross - character allocation amount of that character for the income year, decrease the amount of the * trust component by that amount.

Note:   A cross - character allocation amount of a character for the income year is allocated from a trust component deficit of another character for the income year in accordance with subsections   276 - 330(2), (3) and (4).

Carry - forward trust component deficit decreases trust component

  (3)   If the * AMIT has a * carry - forward trust component deficit of that character for the income year, decrease the amount of the * trust component by the amount of that deficit.

Note:   A carry - forward trust component deficit for the income year is worked out in respect of the previous income year under subsection   276 - 330(5).

FITO allocation amount increases trust component with the character of foreign source income

  (4)   If:

  (a)   the character of the * trust component is a character relating to * ordinary income, or * statutory income, from a source other than an * Australian source; and

  (b)   the * AMIT has a * FITO allocation amount for the income year;

increase the amount of the trust component by that FITO allocation amount.

Note:   A FITO allocation amount for the income year is worked out in accordance with section   276 - 335.