18‑25 Tax credit where recipient is a tr18‑25 Tax credit where recipient is a trust

#### 18‑25 Tax credit where recipient is a trust (1) An entity is entitled under subsection (2), (4), (6) or (8) to a credit in respect of \*amounts withheld (the amounts withheld) from \*withholding payments made to the trustee of a trust during an income year. Trust—section 97 (2) A beneficiary of the trust is entitled to a credit if: (a) an amount is included in the assessable income of the beneficiary under section 97 of the Income Tax Assessment Act 1936 in respect of a share of the net income of the trust; and (b) the share is wholly or partly attributable to the \*withholding payments; and (c) an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the beneficiary for the income year. (3) The amount of the credit is worked out using the formula:  where: > net income means so much of the net income as is attributable to the \*withholding payments. > share of net income means so much of that share of the net income as is attributable to the \*withholding payments. Trust—section 98 (4) The trustee of the trust is entitled to a credit if: (a) under section 98 of the Income Tax Assessment Act 1936 the trustee is liable to be assessed, and to pay income tax, on an amount in respect of a share of the net income of the trust to which a beneficiary is presently entitled; and (b) the share is wholly or partly attributable to the \*withholding payments; and (c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable. (5) The amount of the credit is worked out using the formula:  where: > net income means so much of the net income as is attributable to the \*withholding payments. > share of net income means so much of that share of the net income as is attributable to the \*withholding payments. Trust—section 99 or 99A (6) The trustee of the trust is entitled to a credit under this subsection if: (a) under section 99 or 99A of the Income Tax Assessment Act 1936, the trustee is liable to be assessed, and to pay income tax, on the net income of the trust, or on part of it; and (b) the net income or that part of it is wholly or partly attributable to the \*withholding payments; and (c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable. (7) The amount of the credit is worked out using the formula:  where: > net income means so much of the net income as is attributable to the \*withholding payments. > part of net income means so much of the net income, or of that part of it, as is attributable to the \*withholding payments. Trust—no net income (8) If there is no net income of the trust for the income year, the trustee is entitled to a credit equal to the sum of the \*amounts withheld from the \*withholding payments.