17No double counting of attributed income—distribution by trust to all attributable stakeholders

17 No double counting of attributed income—distribution by trust to all attributable stakeholders

(1) This section applies if:

(a) during a particular derivation period of a trust, an individual receives a distribution of corpus from the trust (the distribution); and

(b) the individual is an attributable stakeholder of the trust during an attribution period that corresponds with the derivation period of the trust; and

(c) the distribution made to the attributable stakeholder is part of a distribution to all attributable stakeholders of the trust (the total distribution); and

(d) the proportion that the distribution to each attributable stakeholder bears to the total distribution, expressed as a percentage, is the same as the attributable stakeholder’s asset attribution percentage in relation to the trust.

(2) For paragraph 52ZZL(2)(d) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include the amount or value of the distribution if, but for this section, the distribution would be included in the ordinary income of the individual for that period.

(3) For paragraph 52ZZL(2)(e) of the Act, the Commission must consider determining that the ordinary income of the individual received during the attribution period does not include any part of the amount or value of the distribution if, but for this section, any part of the amount or value of the distribution would be included in the ordinary income of the individual for that period.