Document ID: chunk:federal_register_of_legislation:C2008A00130:clause:1_7:p5
Version: federal_register_of_legislation:C2008A00130
Segment Type: clause
Provision Reference: sch 1 cl 7 (pt 5/6)
Character Range: 12782–15242

of that share).

Trustees

 (4) *NRAS rent flows indirectly to the trustee of a trust in an income year if, and only if:
 (a) during that income year, the NRAS rent is *derived by the trustee, or *flows indirectly to the trustee as a partner or beneficiary because of a previous application of subsection (2) or (3); and
 (b) the trustee is liable or, but for another provision in this Act, would be liable, to be assessed in respect of an amount (the share amount) that is:
 (i) a share of the trust's *net income for that income year under section 98 of the Income Tax Assessment Act 1936; or
 (ii) all or a part of the trust's net income for that income year under section 99 or 99A of that Act;
  (whether or not the share amount becomes assessable income in the hands of the trustee); and
 (c) the trustee's *share of the NRAS rent under section 380‑30 is a positive amount (whether or not the trustee actually receives any of that share).

Note: A trustee to whom NRAS rent flows indirectly under this subsection is entitled to a tax offset under section 380‑15 and the NRAS rent does not flow indirectly through the trustee to another entity.

 (5) *NRAS rent flows indirectly through an entity (the first entity) to another entity if, and only if:
 (a) the other entity is the focal entity in an item of the table in section 380‑30 in relation to the NRAS rent; and
 (b) that focal entity's *share of the NRAS rent is based on the first entity's share of the NRAS rent as an intermediary entity in that or another item of the table.

380‑30  Share of NRAS rent

Object of section

 (1) The object of this section is to ensure that:
 (a) *NRAS rent derived by a partnership or the trustee of a trust is allocated notionally amongst entities who *derive benefits from that NRAS rent; and
 (b) that allocation corresponds with the way in which those benefits were derived.

 (2) An entity's share of *NRAS rent is an amount notionally allocated to the entity as its share of the NRAS rent, whether or not the entity actually receives any of that NRAS rent.

 (3) That amount is equal to the entity's share of the *NRAS rent as the focal entity in column 3 of an item of the table.

Note: An entity's share of the NRAS rent is based on the share of the NRAS rent of each preceding intermediary entity through which the NRAS rent flows, starting from the intermediary entity to whom the NRAS rent is paid.

 This means that in some cases (see items 2 and