Document ID: chunk:federal_register_of_legislation:C2025C00014:section:109xa:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 109XA (pt 3/4)
Character Range: 982068–984796

the actual transaction takes place; or
 (ii) the company becomes presently entitled to an amount from the net income of the trust estate after the actual transaction takes place, but before the earlier of the due date for lodgment and the date of lodgment of the trustee's return of income for the trust for the year of income of the trust in which the actual transaction takes place, and the whole of the amount has not been paid to the company before the earlier of those dates.
Note: For entitlements through interposed trusts, see section 109XI.

Amount involved in the actual transaction
 (4) The amount involved in the actual transaction is the lesser of:
 (a) the amount actually involved in the actual transaction; and
 (b) the amount worked out using the formula:

          where:
          previous transactions means the sum of:
 (a) the amounts that, because of previous applications of section 109UB (as in force before the commencement of this section) have been taken to be loans; and
 (b) the amounts that, because of previous applications of this Subdivision, have been included in an entity's assessable income;
          in relation to the unpaid present entitlement.
          unpaid present entitlement means:
 (a) in a case mentioned in subparagraph (1)(c)(i), (2)(b)(i) or (3)(b)(i)—the amount of the present entitlement that remained unpaid on the earlier of the dates mentioned in that subparagraph; and
 (b) in a case mentioned in subparagraph (1)(c)(ii), (2)(b)(ii) or (3)(b)(ii)—the amount of the present entitlement that remained unpaid on the earlier of the dates mentioned in that subparagraph.

The amount of the actual transaction where the entitlement is only partly attributable to an unrealised gain
 (5) For the purposes of subsection (4), where the actual transaction was a payment and that payment was only partly attributable to an amount that is an unrealised gain, the amount of the actual transaction is taken to be the amount of the payment that was attributable to the amount that is the unrealised gain.

Creation of a present entitlement is not a payment
 (6) The creation of a present entitlement to the capital or income of a trust estate is not, of itself, a payment for the purposes of this Subdivision.

Meaning of unrealised gain
 (7) In this section:
unrealised gain, in relation to a trust estate and an actual payment, means any unrealised gain, whether of a capital or income nature, but does not include an unrealised gain to the extent that it has been or would be included in the assessable income of the trust, apart from this Division, for:
 (a) a year of income before the year in which the actual payment was made; or
 (b) the year of income in which the actual