In the hypothetical situation that the payment came from either...

  1. 287 Posts.
    lightbulb Created with Sketch. 91
    In the hypothetical situation that the payment came from either a trust or company, the tax isn't being imposed on the foreign entity. It is being imposed on the resident individual here. This is very clear in the wording of both section 99B and Division 7A (either section 109C or section 109D)

    You obviously didn't read the links I posted to the ATO website and the explanatory memorandum to the amending bill that introduced section 99B.... because they both specifically state that the entity doesn't need to be Australian nor does their need to be any Australian source income derived by the company or trust.

    As I stated earlier 99B doesn't require there to be a 'distribution'. It merely requires a payment from the trust (it can even apply to loans through the operation of 99C).

    And just to clarify I never said that if it was a gift from a natural person then it would be taxable nor am I arguing otherwise.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.