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 12-447   TRANSITIONAL - MIT TRADING TRUST INCOME  

12-447(1)  
This section applies if:


(a) an amount (the relevant amount ) included in the assessable income for an income year of a *managed investment trust is *MIT trading trust income of the managed investment trust (disregarding this section); and


(b) immediately before 27 March 2018, the managed investment trust held a *total participation interest (the pre-announcement TPI ) of greater than nil in the second entity mentioned in subsection 12-446(1) (the second entity ); and


(c) the relevant amount was derived, received or made by the managed investment trust before 1 July 2026.

12-447(2)  
Treat part of the relevant amount as not being *MIT trading trust income of the *managed investment trust.

12-447(3)  
That part is equal to the relevant amount multiplied by the fraction worked out under subsections (4) and (5).

12-447(4)  
If the *total participation interest (the post-announcement TPI ) held by the *managed investment trust in the second entity at the end of the most recent income year ending before it derived, received or made the relevant amount exceeds the pre-announcement TPI, work out that fraction by dividing:


(a) the pre-announcement TPI;

by:


(b) the post-announcement TPI.

12-447(5)  
Otherwise, the fraction is 1.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.