Section 100A of ITAA36 is an anti-avoidance provision. It aims to prevent confidence from being reduced by a repayment agreement. Note: Section 960-255 of the Income Tax Assessment Act 1997 may be relevant to the determination of family ties for the purposes of the definition of the agreement. (b) the beneficiary`s current entitlement to that share or part of that share of the income from the assets of the trust (which may be referred to in this subdivision as relevant fiduciary income) arises from a repayment agreement or from an act, transaction or circumstance that occurred in connection with or as a result of a repayment agreement; (a) a repayment agreement was entered into on or after the date on which a person became the beneficiary of a trust asset (whether the person became the beneficiary of the trust assets before or after the commencement of this Division); and any agreement under which a person waives his or her right to repay the loan funds or fails to take steps to recover the loan funds is considered an agreement on the payment of the money. 12. For the purposes of this Division, an agreement providing that a person releases, waives, does not require payment or defers payment of a debt owed by another person is deemed to be an agreement providing for the payment of money to that other person. There is no definition of ordinary family or commercial business. Whether a particular agreement falls within this exclusion depends on all the relevant facts. The ATO says the courts have clarified that the exclusion must be considered in light of all stages of the repayment agreement – not just its components.
(b) under or in connection with the repayment agreement, the beneficiary suffered or suffered a loss or alienation after March 5, 1980 for which a deduction was authorized or would be eligible without this subsection; § 100A only applies if there is a refund agreement within the meaning of Article 100A. the beneficiary`s current entitlement to an amount greater than the initial amount is deemed to result from the repayment agreement. (b) the amount (referred to in this subsection as the increased amount) of the portion of the income from the assets of the trust to which the beneficiary is currently entitled exceeds the amount (referred to in this subsection as the initial amount) of the income from the assets of the trust that the beneficiary would have been or could reasonably have expected, who is currently entitled if the reimbursement agreement has not been concluded or if an act; any transaction or circumstance arising in connection with or as a result of the repayment agreement; The benefit under a repayment agreement may be the payment of a sum of money, the transfer of property (including selected shares) or an estate, interest, rights or power over or over goods or the provision of services. 7. Subject to Subdivision 8, a reference in this Division to a beneficiary of a trust shall be construed as a reference to an agreement entered into before or after the coming into force of this Division that involves the payment of money or the transfer of property to one or more persons other than the beneficiary or beneficiary or the provision of services or services to one or more persons other than the beneficiary or the beneficiary and one or more other persons. A repayment agreement is an agreement in which the trustee transfers fiduciary distributions through the beneficiaries to a third party. „Agreement“ means any agreement, arrangement or arrangement, whether formal or informal, express or implied, and whether enforceable or enforceable by a court, enforceable or intended to be enforceable, but not an agreement, arrangement or arrangement entered into in the ordinary course of business or business. For it to be a refund agreement, at least one of the parties to the agreement must have entered into it for purposes that include a reduction in a person`s income tax….