Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 5/22)
Character Range: 2156401–2159048

does not reduce extra capital gains
 (5) To avoid doubt, section 118‑20 does not reduce a *capital gain that subsection (3) treats you as having for the purpose of applying Division 102.

115‑220  Assessing trustees under section 98 of the Income Tax Assessment Act 1936
 (1) This section applies if:
 (a) you are the trustee of the trust estate; and
 (b) on the assumption that there is a share of the income of the trust to which a beneficiary of the trust is presently entitled, you would be liable to be assessed (and pay tax) under section 98 of the Income Tax Assessment Act 1936 in relation to the trust estate in respect of the beneficiary.
 (2) For each *capital gain of the trust estate, increase the amount (the assessable amount) in respect of which you are actually liable to be assessed (and pay tax) under section 98 of the Income Tax Assessment Act 1936 in relation to the trust estate in respect of the beneficiary by:
 (a) unless paragraph (b) applies—the amount mentioned in subsection 115‑225(1) in relation to the beneficiary; or
 (b) if the liability is under paragraph 98(3)(b) or subsection 98(4), and the capital gain was reduced under step 3 of the method statement in subsection 102‑5(1) (discount capital gains)—twice the amount mentioned in subsection 115‑225(1) in relation to the beneficiary.
 (3) To avoid doubt, increase the assessable amount under subsection (2) even if the assessable amount is nil.

115‑222  Assessing trustees under section 99 or 99A of the Income Tax Assessment Act 1936
 (1) Subsection (2) applies if:
 (a) you are the trustee of the trust estate; and
 (b) section 99A of the Income Tax Assessment Act 1936 does not apply in relation to the trust estate in relation to the relevant income year.
 (2) For each *capital gain of the trust estate, increase the amount (the assessable amount) in respect of which you are liable to be assessed (and pay tax) under section 99 of the Income Tax Assessment Act 1936 in relation to the trust estate by the amount mentioned in subsection 115‑225(1).
 (3) Subsection (4) applies if:
 (a) you are the trustee of the trust estate; and
 (b) subsection (2) does not apply.
 (4) For each *capital gain of the trust estate, increase the amount (the assessable amount) in respect of which you are liable to be assessed (and pay tax) under section 99A of the Income Tax Assessment Act 1936 in relation to the trust estate by:
 (a) if the capital gain was not reduced under either step 3 of the method statement in subsection 102‑5(1) (discount capital gains) or Subdivision 152‑C (small business 50% reduction)—the amount mentioned in subsection 115‑225(1); and