Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p45
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 45/79)
Character Range: 2315964–2318770

it was made), the company confers a present entitlement to, or distributes, income or capital of the company:
 (i) upon or to a person who is neither the individual specified in the family trust election nor a member of the individual's family group in relation to the conferral or distribution; or
 (ii) upon or to the individual specified in the election or a member of the individual's family group, where the individual or member is the trustee of a trust, or the member is a trust, that is not included in the individual's family group in relation to the conferral or distribution.
 (2) If this section applies, the company, together with each person who was a director of the company at the time of the conferral or distribution, is jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Primary Liability) Act 1998, on the amount or value of the income or capital to which the entitlement relates, or that is distributed.

271‑35  Avoidance of double‑counting
  If, after conferring a present entitlement to income or capital as mentioned in paragraph 271‑15(1)(b), 271‑20(1)(b), 271‑25(1)(b) or 271‑30(1)(b), the trust, partnership or company concerned distributes the income or capital in satisfaction of the entitlement, the distribution is disregarded for the purposes of that paragraph.

271‑40  Exclusion of directors from liability to pay tax
 (1) This section applies to a director of a company who is included among persons who are jointly and severally liable to pay family trust distribution tax under section 271‑15, 271‑20, 271‑25 or 271‑30.

Director not taking part in distribution decision
 (2) If:
 (a) the director did not take part in any decision to confer the entitlement or make the distribution concerned; and
 (b) if the director was aware of the proposal to make the decision or of the fact that it was made—the director took reasonable steps to prevent the making, or the implementation, of the decision;
the director is not included among the persons jointly and severally liable.

Director taking part in distribution decision
 (3) If:
 (a) the director took part in any decision to confer the entitlement or make the distribution; and
 (b) the director voted against, or otherwise disagreed with the decision; and
 (c) the director took reasonable steps to prevent the implementation of the decision;
the director is not included among the persons jointly and severally liable.

271‑45  Requirements for section 271‑55 notice to family trust

Notice about non‑resident distributions
 (1) The Commissioner may give a notice in accordance with section 271‑55 (which deals with information about distributions etc. by certain non‑residents) to the trustee of a trust (the primary entity) who has made a family trust election, provided the