Taxation Determination TD 92/112







This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, the Determination applies to transactions entered into both before and after its date of issue. | 1. Sub-subparagraph 102AAU(1)(c)(i)(A) of the Income Tax Assessment Act 1936 provides that the attributable income for a year of income of a non-resident trust estate may be reduced by an amount 'that is or has been included in the assessable income of a beneficiary under section 97'. We accept that amounts satisfy this requirement if they will be included in a beneficiary's assessable income under section 97 after the assessment of the attributable taxpayer in respect of the trust estate. | 2. For instance, an amount might be included in a beneficiary's assessable income under section 97 after the assessment of an attributable taxpayer in respect of a non-resident trust estate if the beneficiary has a substituted accounting period ending after the attributable taxpayer is assessed in relation to the net income of the non-resident trust estate. | Example: A non-resident trust estate to which the transferor trust measures apply derives $1,000 interest income during the 1991-92 income year (1 July 1991 - 30 June 1992) and distributes that income to an Australian beneficiary on 30 June 1992. The beneficiary is a company which has a substituted accounting period ending on 30 December 1992. The interest income will be included in the assessable income of the company beneficiary under section 97 when assessed. | Even though an attributable taxpayer of the trust estate is assessed before the $1,000 interest income is included in the assessable income of the company beneficiary, sub-subparagraph 102AAU(1)(c)(i)(A) applies to exclude the interest income from the attributable income of the trust estate. | Commissioner of Taxation 09/07/92


Legislative references: ITAA 102AAU
Subject references: non-resident trust estates; attributable income