Other Developments
Beneficiary of non-resident trust
05.12.2008
The distribution of trust property by a non-resident trust to an individual resident beneficiary (for whom the foreign investment fund (FIF) provisions did not apply) did not attract the operation of sec 99B ITAA 1936 to the extent that the amount was properly assessable previously to the beneficiary under sec 97 ITAA 1936 (ID 2008/155).
Where the individual beneficiary’s interest was an interest in an FIF to which sec 529 ITAA 1936 applied to include an amount of FIF income in the taxpayer’s assessable income on an accruals basis, sec 99B ITAA 1936 did not apply to the distribution of trust property because sec 23AK(1)(g) ITAA 1936 rendered the payment non-assessable, non-exempt income (ID 2008/156).
