Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_42:p3
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 42 (pt 3/4)
Character Range: 59786–62394

net capital gain is taxed as if it were a capital gain you made (assuming you made the same choices about cost bases including indexation as the trustee).

Section 118‑20 does not reduce extra capital gains

 (5) To avoid doubt, section 118‑20 does not reduce a *capital gain that subsection (3) treats you as having for the purpose of applying Division 102.

Deduction

 (6) You can deduct for the income year the part (if any) of the trust amount that is attributable to the trust estate's *net capital gain mentioned in subsection 102‑5(1).

Note: This deduction ensures you are not taxed twice on the part of the trust amount that is attributable to the trust estate's net capital gain.

115‑220  Special rule for assessing trustee under subsection 98(3) of the Income Tax Assessment Act 1936

Purpose

 (1) The purpose of this section is to ensure a trustee assessed under subsection 98(3) of the Income Tax Assessment Act 1936 (in respect of the share of the net income to which a beneficiary that is a company is entitled) does not get the benefit in that assessment of the *discount percentage that the company would not have got if it had been assessed in respect of the share.

Modification of subsection 98(3)

 (2) The trustee is to be assessed (and pay tax) under subsection 98(3) of the Income Tax Assessment Act 1936 as if the part of the share that is attributable to a *capital gain of the trust estate that was reduced under step 3 of the method statement in subsection 102‑5(1) were double the amount that it actually is.

115‑225  Special rule for assessing trustee under section 99A of the Income Tax Assessment Act 1936

Purpose

 (1) The purpose of this section is to reverse the benefit of applying the *discount percentage or the small business 50% reduction under Subdivision 152‑C in working out the trust estate's net income when the trustee is assessed under section 99A of the Income Tax Assessment Act 1936 on an amount of the net income.

Modification of section 99A

 (2) The trustee is to be assessed (and pay tax) under section 99A of the Income Tax Assessment Act 1936 as if:
 (a) if a *capital gain of the trust was reduced under either step 3 of the method statement in subsection 102‑5(1) (discount capital gains) or Subdivision 152‑C (small business 50% reduction) but not both (even if it was further reduced by the other small business concessions in Subdivisions 152‑D and 152‑E)—the part of the amount that is attributable to the trust estate's capital gain were double the amount that it actually is; and
 (b) if a capital gain was reduced under both step