Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-25 - PARTICULAR KINDS OF TRUSTS  

Division 276 - Australian managed investment trusts: attribution managed investment trusts  

Subdivision 276-K - Ceasing to be an AMIT  

Operative provisions

SECTION 276-820   Effect of decrease  

276-820(1)    
This section applies if there is a decrease as mentioned in paragraph 276-810(2)(b) .

276-820(2)    
If the character mentioned in subsection 276-810(2) relates to assessable income:

(a) in the case of a character of:

(i) a *discount capital gain from a *CGT asset that is *taxable Australian property; or

(ii) a discount capital gain from a CGT asset that is not taxable Australian property;

treat half the amount of the decrease as a *capital loss of the trust for the discovery year; or

(b) in the case of a character of:

(i) a *capital gain (other than a discount capital gain) from a CGT asset that is taxable Australian property; or

(ii) a capital gain (other than a discount capital gain) from a CGT asset that is not taxable Australian property;

treat the amount of the decrease as a capital loss of the trust for the discovery year; or

(c) in any other case - treat the amount of the decrease as a deduction of the trust for the discovery year.

276-820(3)    
If that character relates to *exempt income, treat the amount of the decrease as reducing the exempt income of the trust for the discovery year.

276-820(4)    
If that character relates to *non-assessable non-exempt income, treat the amount of the decrease as reducing the non-assessable non-exempt income of the trust for the discovery year.

276-820(5)    
If that character relates to a *tax offset, treat the amount of the decrease as reducing the tax offset or offsets (the existing offset or offsets ) of the trust for the discovery year of a kind corresponding to that character.

276-820(6)    
If that character relates to a *tax offset and exceeds the total of the existing offset or offsets (before the reduction under subsection (5)):

(a) unless paragraph (b) applies - the trustee is liable to pay tax at the rate declared by the Parliament on the excess; or

Note:

The tax is imposed by the Income Tax (Attribution Managed Investment Trusts - Offsets) Act 2016 and the rate of the tax is set out in that Act.

(b) if that character is the character of *foreign income tax paid that counts towards a tax offset under Division 770 - subsection (7) applies.

276-820(7)    
Increase the trust ' s assessable income for the discovery year by the sum of:

(a) the excess mentioned in subsection (6); and

(b) the product of:

(i) that excess; and

(ii) the *corporate tax gross-up rate.

Treat the amount of that increase as assessable income from a source other than an *Australian source.