Section 372 — Income Tax Assessment Act 1936: Attribution debit

(1) An attribution debit arises for an attribution account entity (in this section called the eligible entity) in relation to a taxpayer if: (a) the eligible entity makes an attribution account payment to the taxpayer or to another attribution account entity; and (b) immediately before the eligible entity makes the attribution account payment, there is an attribution surplus for the eligible entity in relation to the taxpayer. (2) Subject to subsection (4), the amount of the debit is the lesser of: (a) the attribution surplus; and (b) whichever of the following is applicable: (i) if the attribution account payment is made to the taxpayer—the attribution account payment; (ii) in any other case—the taxpayer’s attribution account percentage (for the attribution account entity to which the payment is made) of the attribution account payment. (4) Where: (a) the attribution account payment is made to an attribution account entity that is a trust; and (b) the attribution surplus, for the eligible entity, is in relation to the taxpayer in the capacity of trustee of the trust (because it is a surplus that resulted from an attribution credit or credits that arose under subparagraph 371(6)(b)(iii)); then the amount of the attribution debit is the lesser of: (c) the attribution surplus; and (d) any amount assessable to the taxpayer under section 99 or 99A in relation to the net income of the trust of the year of income in which the attribution account payment is made. (5) The attribution debit arises when the attribution account payment is made.