Document ID: chunk:federal_register_of_legislation:C2025C00014:section:102aam:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 102AAM (pt 4/8)
Character Range: 743545–746294

or trusts) to the distributed amount of the non‑resident trust's year of income;
 (iv) if sub‑subparagraph (ii)(E) applies—the whole or a part (which whole or part is in this subsection also called the taxpayer's portion of the distributed amount of the non‑resident trust's year of income) of the part or share of the net income is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the distributed amount of the non‑resident trust's year of income;
the actual taxpayer is liable to pay interest to the Commissioner in respect of the taxpayer's portion of the distributed amount of the non‑resident trust's year of income, calculated under subsection (5), on the amount calculated using the formula:

where:
Taxpayer's portion of the distributed amount means the taxpayer's portion of the distributed amount of the non‑resident trust's year of income.
Applicable rate of tax has the meaning given by subsection (10).
FITO (Foreign income tax offset) means so much of any tax offset under Division 770 of the Income Tax Assessment Act 1997 to which the taxpayer is entitled as is attributable to the taxpayer's portion of the distributed amount of the non‑resident trust's year of income.
 (4A) If:
 (a) paragraph 102UK(2)(b) or 102UM(2)(b) has the effect that the whole or a part of a share of the net income of a trust estate (the first trust estate) is not included in the assessable income of the trustee of another trust estate (the second trust estate); and
 (b) the whole or the part of the share (which whole or part is in this subsection called the taxpayer's portion of the distributed amount of the non‑resident trust's year of income) is attributable (either directly or indirectly through one or more interposed partnerships or trusts) to the distributed amount of the non‑resident trust's year of income; and
 (c) if paragraph 102UK(2)(b) or 102UM(2)(b) were ignored, the second trust estate would be an interposed trust mentioned in applying subparagraph (4)(b)(iii) or (iv) of this section; and
 (d) this subsection does not also apply to the trustee of a trust interposed between the first trust estate and the non‑resident trust;
the trustee of the first trust estate is liable to pay interest to the Commissioner in respect of the taxpayer's portion of the distributed amount of the non‑resident trust's year of income, calculated under subsection (5), on the amount calculated using the formula:

where:
applicable rate of tax has the meaning given by subsection (10).
FITO (Foreign income tax offset) means so much of any tax offset under Division 770 of the Income Tax Assessment Act 1997 to which the trustee of the first trust would be entitled, in respect of the taxpayer's