Document ID: chunk:federal_register_of_legislation:C2016C00969:section:7:p1
Version: federal_register_of_legislation:C2016C00969
Segment Type: section
Provision Reference: s 7 (pt 1/7)
Character Range: 29578–32270

7  Requests to eliminate trust recoupment tax on certain taxable amounts
 (1) Subject to subsections (3) and (5), 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); and
 (b) if there had been a distribution (in this subsection referred to as the income distribution) at the relevant distribution time of income of the relevant trust estate of an amount equal to the primary taxable amount, an eligible person or eligible persons would have received, or might reasonably be expected to have received, the whole or a part of the income distribution if there had been successive distributions of the relative parts of the income distribution to and by each of any trustees, not being prescribed persons, interposed between the relevant trust estate and the eligible person or eligible persons;
the eligible person or all the eligible persons, as the case may be, may make a request that this section should apply in relation to the eligible person or all the eligible persons, as the case may be, in relation to the primary taxable amount.
 (2) Subject to subsection (5), where:
 (a) an elected taxable amount exists in relation to a company (in this subsection referred to as the relevant company); and
 (b) if there had been a distribution (in this subsection referred to as the income distribution) at the relevant distribution time of income of the relevant company of an amount equal to 48.6% of the elected taxable amount, a prescribed person or prescribed persons would have received, or might reasonably be expected to have received, the whole or a part of the income distribution if there had been successive distributions of the relative parts of that income distribution to and by each of any companies or trustees, not being prescribed persons, interposed between the relevant company and the prescribed person or prescribed persons;
the prescribed person or all the prescribed persons, as the case may be, may make a request that this section should apply in relation to the prescribed person or all the prescribed persons, as the case may be, in relation to the elected taxable amount.
 (3) Where:
 (a) a company (in this subsection referred to as the relevant company) not being a prescribed person would, but for this subsection, be entitled to make a request under subsection (1) either alone or together with another person or other persons; and
 (b) if there had been a distribution (in this subsection referred to as the relevant income distribution) at the relevant distribution time of income of the relevant company of an amount equal to 48.6% of the amount that, for the