Section HC 21 — Income Tax Act 2007: Distributions from community trusts

HC 21 Distributions from community trusts What this section applies to (1) This section applies when a community trust distributes an amount other than beneficiary income to a person. Exclusion (2) Subsection (1) does not apply to the extent to which the amount represents— (a) income derived by the trustee in or before the 2003–04 income year: (b) corpus of the trust: (c) a capital gain of the trust: (d) a distribution, settlement, or dividend made or paid to the trust in the 2004–05 or 2005–06 income year on the winding up of a trust or company, if— (i) the community trust provided the corpus of the trust and the trust would have been run for charitable purposes but for the distribution, settlement, or dividend: (ii) the company is wholly-owned by the community trust and would have been established and run exclusively for charitable purposes but for the distribution, settlement, or dividend. Income (3) Despite sections HC 15 and HC 20 , the amount is income of the person under section CV 14 (Distributions from community trusts). Defined in this Act: amount , beneficiary income , charitable purpose , community trust , company , corpus , distribution , dividend , income , income year , pay , settlement , trustee , trustee income , Compare: 2004 No 35 s HH 3(5A) Section HC 21(3): amended (with effect on 1 April 2008), on 6 October 2009, by section 263(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).