Document ID: chunk:federal_register_of_legislation:C2016C00969:section:6:p1
Version: federal_register_of_legislation:C2016C00969
Segment Type: section
Provision Reference: s 6 (pt 1/3)
Character Range: 24367–26927

6  Secondary taxable amounts
 (1) Where:
 (a) a primary taxable amount exists in relation to the trustee of a trust estate in relation to a year of income; and
 (b) either of the following conditions is satisfied:
 (i) the trust estate ceased to exist before the commencement of this Act;
 (ii) the trust estate has ceased to exist after the commencement of this Act and an assessment of the trust recoupment tax payable on the primary taxable amount was not made before the trust estate ceased to exist;
a secondary taxable amount of an amount equal to the primary taxable amount shall be taken to exist in relation to the eligible beneficiaries class in relation to the year of income.
 (2) Where:
 (a) a primary taxable amount exists in relation to the trustee of a trust estate (in this subsection referred to as the relevant trust estate) in relation to a year of income;
 (b) during the period (in this subsection referred to as the relevant period) after the time when the tax avoidance scheme to which the primary taxable amount relates was entered into and before the time of service of any notice of assessment in respect of trust recoupment tax payable on the primary taxable amount:
 (i) any beneficial interest in the relevant trust estate was sold; or
 (ii) any beneficial interest in another trust estate that at any time during the relevant period was a holding trust estate in relation to the relevant trust estate was sold; and
 (c) the Commissioner is of the opinion that, by reason of a circumstance mentioned in paragraph (b), it would be unreasonable that the trustee of the relevant trust estate be liable to pay trust recoupment tax on the primary taxable amount;
the following provisions have effect:
 (d) a secondary taxable amount of an amount equal to the primary taxable amount shall be taken to exist in relation to the eligible beneficiaries class in relation to the year of income;
 (e) the trustee of the relevant trust estate is not liable, and shall be deemed never to have been liable, to pay trust recoupment tax on the primary taxable amount.
 (3) Where:
 (a) there remains unpaid an amount of trust recoupment tax payable by the trustee of a trust estate on a primary taxable amount that exists in relation to the trustee in relation to a year of income and the Commissioner is of the opinion that the trust recoupment tax, or part of the trust recoupment tax, is unlikely to be paid; or
 (b) a trust estate ceases to exist at a time when there remains unpaid an amount of trust recoupment tax payable by the trustee on a