Document ID: chunk:federal_register_of_legislation:C2025C00014:section:124zm:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 124ZM (pt 2/3)
Character Range: 1192273–1194868

Assessment Act 1997, for the year of income in which the distribution is made.
  venture capital franked part is the part of the distribution that is franked with a venture capital credit.
  total income is the life assurance company's assessable income for the year of income in which the distribution is made; and
 (b) if the franked part exceeds the amount so exempt—the excess is, subject to subsection (7), exempt income of the life assurance company.

No exemption if return prepared on basis that amount assessable
 (7) Subsection (4) and paragraphs (5)(b) and (6)(b) do not exempt, and are taken never to have exempted, an amount if the taxpayer's return of income of the year of income is prepared on the basis that the amount is included in the taxpayer's assessable income of that year.

Where partner entitled to deduction for amount flowing indirectly
 (8) If:
 (a) any of the franked part of the distribution flows indirectly to a taxpayer who is a partner in a partnership; and
 (b) apart from this subsection, the amount that flows indirectly would be allowable as a deduction from the taxpayer's assessable income of a year of income; and
 (c) the taxpayer is of a kind mentioned in any of paragraphs (3)(a) to (d);
the amount that flows indirectly is not allowable as a deduction from that assessable income.
 (9) Subsection (8) does not prevent, and is taken never to have prevented, an amount from being allowable as a deduction if the taxpayer's return of income of the year of income is prepared on the basis that the amount is so allowable.

Where trustee assessed on amount flowing indirectly
 (10) If:
 (a) any of the franked part of the distribution flows indirectly to the trustee of a trust estate; and
 (b) apart from this subsection, the trustee would be liable under section 98, 99 or 99A to be assessed and pay tax on the amount that flows indirectly;
the trustee is not liable under that section to be assessed and to pay tax on the amount that flows indirectly.
 (11) Subsection (10) does not prevent, and is taken never to have prevented, the trustee from being liable under that section to be assessed and to pay tax on an amount if the trustee elects to be so liable.
 (12) An election must be made in the trustee's return of income of the trust estate for the year of income concerned.

Interpretation
 (13) In this section:
flows indirectly has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
part of a distribution that is franked with a venture capital credit has the meaning given by subsection 995‑1(1) of the Income Tax