Income Tax Act 2007 section 537

Exemption for income from estates in administration

Section 537 provides an exemption from income tax for estate income received by the trustees of a charitable trust, where that income is applied to the charitable trust's purposes.

• Estate income received by charitable trust trustees is exempt from income tax, provided it is used for the trust's charitable purposes
• Estate income is income from property held by personal representatives of a deceased person's estate on behalf of beneficiaries
• The exemption allows charitable trust trustees to recover any income tax already suffered on the estate income at the hands of the personal representatives
• The exemption applies only to the extent that the estate income is actually applied to the purposes of the charitable trust