Document ID: chunk:federal_register_of_legislation:C2025C00014:section:94:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 94 (pt 1/5)
Character Range: 596821–599228

94  Partner not having control and disposal of share in partnership income
 (1) Subject to this section, where:
 (a) a share in the net income of a partnership of a year of income is included in the assessable income of a partner in the partnership, not being:
 (i) a company;
 (ii) a person in the capacity of a trustee; or
 (iii) a person who was under the age of 18 years on the last day of the year of income of the person that corresponds with the year of income of the partnership; and
 (b) the partnership is so constituted or controlled, or its operations are so conducted, that the partner has not the real and effective control and disposal of that share or of a part of that share;
this section applies to that share or that part of that share, as the case may be.
 (2) Subject to the succeeding provisions of this section, where:
 (a) a partnership is so constituted or controlled, or its operations are so conducted, that a partner in the partnership, being a trustee of a trust estate, has not the real and effective control and disposal of his or her share in the net income of the partnership of a year of income or of a part of that share (which share or part of a share, as the case may be, is in this subsection referred to as uncontrolled partnership income); and
 (b) in calculating in accordance with section 95 the net income of that trust estate or of any other trust estate, there is included in the assessable income of the trust estate any uncontrolled partnership income;
then:
 (c) if:
 (i) a beneficiary, not being a company or a person who was under the age of 18 years on the last day of the year of income of the person that corresponds with the year of income of the partnership, is presently entitled to the whole of the income of the trust estate otherwise than in the capacity of a trustee; or
 (ii) there is no part of the net income of the trust estate that is included in the assessable income of a beneficiary in pursuance of section 97 or in respect of which the trustee is assessed and liable to pay tax in pursuance of section 98;
  this section applies to the portion of the net income of the trust estate that was derived from uncontrolled partnership income;
 (d) if a beneficiary, not being a company or a person who was under the age of 18 years on the last day of the year of income of the person that corresponds with the year of income of the partnership,