Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p49
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 49/79)
Character Range: 2325989–2328488

unpaid amount) of the tax will be paid; and
 (c) when the Commissioner makes the determination:
 (i) a trustee of the family trust is a non‑resident; or
 (ii) the central management and control of the family trust is outside Australia;
then the consequences set out in subsection (2) result.

Tax liability
 (2) The consequences are:
 (a) if there is only one person covered by subsection (3)—that person is liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount; and
 (b) if there are 2 or more persons covered by subsection (3)—those persons are jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount.

Persons liable under subsection (2)
 (3) The persons covered by this subsection are:
 (a) the trustee of any trust to which subsection (4) applies; and
 (b) if the trustee of any such trust is a company—any person who is a director of the company when the determination is made; and
 (c) any company to which subsection (5) applies; and
 (d) any person who is a director of such a company when the determination is made.

Trust mentioned in paragraph (3)(a)
 (4) This subsection applies to a trust if the trust would be:
 (a) prevented by Division 266 or 267 from deducting a tax loss or amount in respect of a debt; or
 (b) required by Division 266 or 267 to work out its net income and tax loss under Division 268;
in the income year in which the determination is made, or an earlier income year, if the family trust had not been a family trust.

Company mentioned in paragraph (3)(c)
 (5) This subsection applies to a company if, in its return of income for the income year in which the determination is made or an earlier income year:
 (a) the company deducted an amount in respect of a debt, where it was allowed to do so but, because of former section 63B or 63C, or Subdivision 165‑C, 709‑D or 719‑I of the Income Tax Assessment Act 1997, it would not have been if the family trust had not been a family trust; or
 (b) the company deducted a tax loss (within the meaning of the Income Tax Assessment Act 1997) where it was allowed to do so but, because of Subdivision 165‑A of that Act, it would not have been if the family trust had not been a family trust; or
 (c) the company applied a net capital loss (within the meaning of former Part IIIA of this Act) where it was allowed to do so but, because of former subsection 160ZC(5), it