TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-H - Distributions of withholding MIT income  

Operative provisions

SECTION 12-446   MEANING OF MIT TRADING TRUST INCOME  

12-446(1)  
This section applies if:


(a) an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust ' s *net income, or in the case of an *AMIT, the trust ' s total assessable income, for the income year); and


(b) the amount mentioned in paragraph (a) is, or is attributable to, an amount derived, received or made from another entity (the second entity ); and


(c) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12-405(1)(a) , (b), (c), (d) or (e).

12-446(2)  
The amount is MIT trading trust income of the *managed investment trust if:


(a) the managed investment trust holds a *total participation interest in the second entity of greater than nil; and


(b) the amount arises because of that total participation interest; and


(c) the second entity:


(i) is a trading trust for the purposes of Division 6C of Part III of the Income Tax Assessment Act 1936 in relation to the income year; or

(ii) is a partnership or a trust that is not a unit trust, but would be such a trading trust in relation to the income year if it were a unit trust throughout the income year; and


(d) the second entity is not a *public trading trust in relation to the income year.

12-446(3)  
The amount is not MIT trading trust income of the *managed investment trust under subsection (2) to the extent that it is attributable to a *capital gain made from *CGT event E4 or *CGT event E10.




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