Do beneficiaries have to pay tax, even though withholding tax has already been applied

 Author: starfish_987(Initiate)Initiate

26 Oct 2024

Hi,

If a non-resident estate (because the executor is foreign) accrues interest at an Australian bank, I understand that withholding tax applies.

Will Australian beneficiaries need to also pay tax on the bank interest amount even though withholding tax has already been applied under section 99b? I understand it's probably not 'corpus of the trust' but tax has already been paid (although not under section 98,99 or 99A, but instead under section 128B).

It feels like it would be double taxing if the beneficiaries also had to pay tax on the interest amounts.

Thanks

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