Document ID: chunk:federal_register_of_legislation:C2004A05083:schedule:1:p6
Version: federal_register_of_legislation:C2004A05083
Segment Type: schedule
Provision Reference: sch 1 (pt 6/18)
Character Range: 14172–16906

adjusted tax-free threshold exceeds the taxable income; and

          (c) the taxable income exceeds $5,400;

      the rate of complementary tax, as determined under subsection 12(3), is reduced by the rate worked out using the formula:

      (2) If:

          (a) a taxpayer to whom section 20C or 20D applies, or would apart from section 20E apply, in respect of a year of income is liable to pay complementary tax under subsection 156(4A) of the Assessment Act in respect of the whole or a part of the taxable income of the year of income; and

          (b) the adjusted tax-free threshold exceeds the taxable income; and

          (c) the taxable income does not exceed $5,400;

      the rate of complementary tax, as determined under subsection 12(3), is reduced by the rate worked out using the formula:

       (3) If:

          (a) a trustee of a trust estate is liable to be assessed and to pay tax under subsection 98(1) or (2) of the Assessment Act in respect of a beneficiary's share of the net income of a trust estate of the year of income; and

          (b) the trustee is liable to pay complementary tax under subsection 156(5A) of that Act in respect of the share; and

          (c) section 20C or 20D applies, or would apart from section 20E apply, to the beneficiary; and

          (d) the adjusted tax-free threshold exceeds the share of net income; and

          (e) the share of net income exceeds $5,400;

      the rate of complementary tax, as determined under subsection 12(4), is reduced by the rate worked out using the formula:

      (4) If:

          (a) a trustee of a trust estate is liable to be assessed and to pay tax under subsection 98(1) or (2) of the Assessment Act in respect of a beneficiary's share of the net income of a trust estate of the year of income; and

          (b) the trustee is liable to pay complementary tax under subsection 156(5A) of that Act in respect of the share; and

          (c) section 20C or 20D applies, or would apart from section 20E apply, to the beneficiary; and

          (d) the adjusted tax-free threshold exceeds the share of net income; and

          (e) the share of net income does not exceed $5,400;

      the rate of complementary tax, as determined under subsection 12(4), is reduced by the rate worked out using the formula:

       (5) In this section:

      adjusted tax-free threshold means the number of whole dollars in the amount worked out using the formula:

      $5,400 + tax - free threshold increase

      tax-free threshold increase means the number of whole dollars in the sum of the amounts by which, subject to this Division, the amount of $5,400 set out in column 1 of the table in clause 1 of Part 1 of Schedule