Taxation Determination TD 92/159







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 No. Subsection 100(1) of the Income Tax Assessment Act 1936 only requires the inclusion of the trust income in the beneficiary's assessable income where the beneficiary also derives a distribution from another trust estate or derives income from another source. | 2 The beneficiary is not required to declare the trust income and therefore the lodgment of the beneficiary's individual return is not necessary. | 3 The trustee is liable for the tax assessed on the beneficiary's share of the net trust estate income under subsection 98(1). | Note: The distribution is also not included as assessable income under paragraph 26(b) because the trustee is assessed and liable to pay tax in pursuance of section 98. | Example: An under 18 beneficiary's only source of income is a single trust distribution of $10000. The beneficiary is not required to lodge a return. | Commissioner of Taxation 17/09/92 | Previously Draft TD 92/D114


Legislative references: ITAA 98(1); ITAA 100(1)
Subject references: legal disability; single source trust distribution