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CONTENTS
Family Trust Distribution Tax (Secondary Liability) Bill
1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Treasury
Commencement: Royal Assent
To impose formally tax on trustees and, when a trust is a
company the directors of the company, that will be payable by
non-resident trusts where the Commissioner is of the opinion that
the non-resident trust will not or has not paid tax that is
due.
The Taxation Laws Amendment (Trust Loss and Other Deductions)
Bill 1997 provides for the assessment of tax where a non-resident
family trust makes a distribution to a person outside the family
group. It is proposed that the rate of tax will be 100% of the
unpaid amount. This Bill is necessary as section 55 of the
Constitution requires that a Bill imposing tax deal only with the
imposition of tax.
For further information on the general issue of family trusts
refer to the Digest for the Taxation Laws Amendment (Trust Loss and
Other Deductions) Bill 1997.
Clause 3 will impose formally the tax on unpaid
tax due from non-resident family trusts.
Clause 4 provides that the amount of tax
payable under this Bill will be equal to the amount of unpaid
tax.
Chris Field
19 November 1997
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 1997
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Last updated: 21 November 1997
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