To what payments does subdivision EA apply?
Not all payments are affected. A payment is only affected if it is attributable to an unrealised gain (for example, capital profits reflected in an asset revaluation reserve) and the payment discharges a present entitlement due to the shareholder or associate by the trust. If a payment is only partly attributable to an unrealised gain, then only the part attributable to the unrealised gain is subject to subdivision EA. A trustee may nominate whether a payment is attributable to an unrealised gain. However, if a payment is nominated as being attributable to a realised gain and there are insufficient realised gains to fund the payment, the excess will be treated as from an unrealised source.
