Document ID: chunk:federal_register_of_legislation:C2025C00014:section:102uk:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 102UK (pt 1/2)
Character Range: 869677–872266

102UK  Trustee beneficiary non‑disclosure tax where no correct TB statement
 (1) Subject to subsection (2A), this section applies if:
 (a) a share of the net income of a closely held trust for a year of income is included in the assessable income of a trustee beneficiary of the trust under section 97; and
 (b) the share comprises or includes an untaxed part; and
 (c) the trustee of the closely held trust is not covered by a determination under subsection (1A) for the year of income; and
 (ca) the closely held trust is none of the following:
 (i) a family trust (within the meaning of section 272‑75 in Schedule 2F);
 (ii) a trust in relation to which an interposed entity election has been made and is in force in accordance with section 272‑85 in Schedule 2F;
 (iii) a trust covered by subsection 272‑90(5) in Schedule 2F; and
 (d) during the TB statement period in relation to the year of income, the trustee of the closely held trust does not make and give to the Commissioner a correct TB statement about the share.

Determination that a class of trustees is not required to give a correct TB statement
 (1A) The Commissioner may, by legislative instrument, determine that a specified class of trustees is not required to make a correct TB statement for a year of income.
 (1B) A determination under subsection (1A):
 (a) may be expressed to be subject to conditions; and
 (b) may be for one or more years of income.

Consequences of section applying
 (2) If this section applies:
 (a) either:
 (i) if the trustee of the closely held trust is the only person in the trustee group (see subsection (3))—the trustee is liable to pay tax; or
 (ii) if the trustee of the closely held trust is not the only person in the trustee group—the persons in the trustee group are jointly and severally liable to pay tax;
  as imposed by the Taxation (Trustee Beneficiary Non‑disclosure Tax) Act (No. 1) 2007, on the untaxed part; and
 (b) except for the purposes of sections 99, 99A and 99B and this Division, the untaxed part is not included in the assessable income of the trustee beneficiary under section 97.
Note: Provisions dealing with the payment etc. of the tax under paragraph (a) (known as trustee beneficiary non‑disclosure tax) are set out in Subdivision D.

Amendment of incorrect statement
 (2A) If:
 (a) during the TB statement period in relation to a year of income, the trustee of a closely held trust makes and gives to the Commissioner a statement, that the trustee believes on reasonable grounds is a correct TB statement, about a share of the net income of the trust; and