Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p55
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 55/79)
Character Range: 2340194–2342720

distribution tax (the tax payable) becomes payable under any of sections 271‑15 to 271‑30 and 271‑55 on the amount or value of income or capital of a company, partnership or trust; and
 (b) a payment (the tax payment amount) of the whole or part of the tax payable is made, or a reduction (also the tax payment amount) in the whole or part of the tax payable takes place under paragraph 271‑70(b); and
 (c) taking into account any previous application of this subsection, the whole or part of the amount or value of the income or capital is included in the assessable income of the company, partnership or trust or of any other person;
the amount included in the assessable income is reduced by the amount worked out using the formula in subsection (2).
 (2) The formula is:

The original assessable amount is so much of the amount or value of the income or capital as, disregarding any previous reductions under this section, is included in the assessable income of the company, partnership or trust or of any other person.
 (3) The amount of the reduction is not assessable income and is not exempt income.

Division 272—Interpretation

Subdivision 272‑A—Fixed entitlement to share of income or capital

272‑5  Fixed entitlement to share of income or capital of a trust
 (1) If, under a trust instrument, a beneficiary has a vested and indefeasible interest in a share of income of the trust that the trust derives from time to time, or of the capital of the trust, the beneficiary has a fixed entitlement to that share of the income or capital.

Case where interest not defeasible
 (2) If:
 (a) a person holds units in a unit trust; and
 (b) the units are redeemable or further units are able to be issued; and
 (c) if units in the unit trust are listed for quotation in the official list of an approved stock exchange—the units held by the person will be redeemed, or any further units will be issued, for the price at which other units of the same kind in the unit trust are offered for sale on the approved stock exchange at the time of the redemption or issue; and
 (d) if the units are not listed as mentioned in paragraph (c)—the units held by the person will be redeemed, or any further units will be issued, for a price determined on the basis of the net asset value, according to Australian accounting principles, of the unit trust at the time of the redemption or issue;
then the mere fact that the units are redeemable, or that the further units are able to be issued, does not mean that the person's interest,