Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:10_7:p4
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 10 cl 7 (pt 4/6)
Character Range: 186868–189479

*share of the distribution under section 207‑55 is a positive amount (whether or not the partner actually receives any of that share).

Beneficiaries

 (3) A *franked distribution flows indirectly to a beneficiary of a trust in an income year if, and only if:
 (a) during that income year, the distribution is made to the trustee of the trust, or *flows indirectly to the trustee as a partner or beneficiary because of a previous application of subsection (2) or this subsection; and
 (b) the beneficiary has this amount for that income year (the share amount):
 (i) a share of the trust's *net income for that income year that is covered by paragraph 97(1)(a) of the Income Tax Assessment Act 1936; or
 (ii) an individual interest in the trust's net income for that income year that is covered by paragraph 98A(1)(a) or (b), or paragraph 100(1)(a) or (b), of that Act;
  (whether or not the share amount becomes assessable income in the hands of the beneficiary); and
 (c) the beneficiary's *share of the distribution under section 207‑55 is a positive amount (whether or not the beneficiary actually receives any of that share).

Trustees

 (4) A *franked distribution flows indirectly to the trustee of a trust in an income year if, and only if:
 (a) during that income year, the distribution is made to 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 distribution under section 207‑55 is a positive amount (whether or not the trustee actually receives any of that share).

Note: A trustee to whom a franked distribution flows indirectly under this subsection is entitled to a tax offset under section 207‑45 and the distribution does not flow indirectly through the trustee to another entity.

 (5) A *franked distribution 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 207‑55 in relation to the distribution; and
 (b) that focal entity's *share of the distribution is based on the first