Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-25
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PARTICULAR KINDS OF TRUSTS
Division 275
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Australian managed investment trusts: general
Subdivision 275-L
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Modification for non-arm
'
s length income
Operative provisions
SECTION 275-605
Trustee taxed on amount of non-arm
'
s length income of managed investment trust
275-605(1)
Subsections (2), (3) and (4) apply if the Commissioner has made a determination under section 275-615 that specifies an amount of *non-arm ' s length income for a specified *managed investment trust in relation to a specified income year. Excess amount to be taxed 275-605(2)
The trustee of the *managed investment trust is liable to pay income tax at the rate declared by the Parliament on the amount mentioned in subsection (5).
If the trust is an *AMIT for the income year:
(a) if paragraph (b) does not apply - treat the trust as having an *over in the income year in which the determination is made, for the specified income year, of a character relating to *ordinary income, or *statutory income, from an *Australian source, equal to the amount mentioned in subsection (5); or
(b) if the trust already has such an over in the income year in which the determination is made, for the specified income year - increase the amount of that over by the amount mentioned in subsection (5). 275-605(4)
If the trust is not an *AMIT for the income year, reduce the trust ' s *net income for the income year in which the determination is made by the amount mentioned in subsection (5), to the extent that the net income is attributable to that amount. Excess amount 275-605(5)
The amount is the excess mentioned in paragraph 275-610(1)(b) in respect of the *non-arm ' s length income, reduced by deductions (if any) that:
(a) are reflected in:
(b) are attributable only to the amount of non-arm ' s length income.
View history note
Hide history noteSubsections (2), (3) and (4) apply if the Commissioner has made a determination under section 275-615 that specifies an amount of *non-arm ' s length income for a specified *managed investment trust in relation to a specified income year. Excess amount to be taxed 275-605(2)
The trustee of the *managed investment trust is liable to pay income tax at the rate declared by the Parliament on the amount mentioned in subsection (5).
Note:
The rate is set out in subsection 12(10) of the Income Tax Rates Act 1986 .
Excess amount to be adjusted 275-605(3)If the trust is an *AMIT for the income year:
(a) if paragraph (b) does not apply - treat the trust as having an *over in the income year in which the determination is made, for the specified income year, of a character relating to *ordinary income, or *statutory income, from an *Australian source, equal to the amount mentioned in subsection (5); or
(b) if the trust already has such an over in the income year in which the determination is made, for the specified income year - increase the amount of that over by the amount mentioned in subsection (5). 275-605(4)
If the trust is not an *AMIT for the income year, reduce the trust ' s *net income for the income year in which the determination is made by the amount mentioned in subsection (5), to the extent that the net income is attributable to that amount. Excess amount 275-605(5)
The amount is the excess mentioned in paragraph 275-610(1)(b) in respect of the *non-arm ' s length income, reduced by deductions (if any) that:
(a) are reflected in:
(i) if the trust is an *AMIT for the income year - the amounts of its *trust components for the income year (disregarding subsection (3)); or
(ii) otherwise - its *net income for the income year (disregarding subsection (4)); and
(b) are attributable only to the amount of non-arm ' s length income.
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