The object of this section is to adjust the discount percentage so as to deny a trustee a discount for a
capital gain for which the trustee is liable:
(a) to be assessed; and
(b) to pay tax;
Income Tax Assessment Act 1936
in relation to the trust estate in respect of a beneficiary to the extent that the beneficiary was a foreign resident or
This section applies to a
discount capital gain of a trust estate if:
(a) you are the trustee of that trust; and
applies to you in relation to the discount capital gain and a beneficiary of the trust who is an individual.
The percentage resulting from this section is the same as the
discount percentage for the corresponding
discount capital gain the beneficiary would have made for the purposes of Division
applied to the beneficiary.