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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and trusts ' net capital gains    View history reference

Subdivision 115-C - Rules about trusts with net capital gains    View history reference

Operative provisions

SECTION 115-230  Choice for resident trustee to be specifically entitled to capital gain  

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Purpose

115-230(1)  

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The purpose of this section is to allow a trustee of a resident trust to make a choice that has the effect that the trustee will be assessed on a *capital gain of the trust if no trust property representing the capital gain has been paid to or applied for the benefit of a beneficiary of the trust.

Trusts for which choice can be made

115-230(2)  

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A trustee can only make a choice under this section in relation to a trust estate that is, in the income year in respect of which the choice is made, a resident trust estate (within the meaning of Division 6 of Part III of the Income Tax Assessment Act 1936 ).

Circumstances in which choice can be made

115-230(3)  

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If:


(a) a *capital gain is taken into account in working out the *net capital gain of a trust for an income year; and
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(b) trust property representing all or part of that capital gain has not been paid to or applied for the benefit of a beneficiary of the trust by the end of 2 months after the end of the income year;
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(c) (Repealed by No 62 of 2011)
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the trustee may, no later than the deadline in subsection (5), make a choice that subsection (4) applies in respect of the capital gain.

Consequences if trustee makes choice

115-230(4)  

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These are the consequences if the trustee makes a choice that this subsection applies in respect of a *capital gain:


(a) sections 115-215 and 115-220 do not apply in relation to the capital gain;


(b) for the purposes of this Act, the trustee is taken to be *specifically entitled to all of the capital gain.

Deadline for making choice

115-230(5)  

The deadline for the purposes of subsection (3) is:


(a) the day 2 months after the last day of the income year; or


(b) a later day allowed by the Commissioner.

Note:

This deadline is an exception to the general rule about choices in section 103-25 .


 



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