INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-25 - PARTICULAR KINDS OF TRUSTS  

Division 275 - Australian managed investment trusts: general  

Subdivision 275-L - 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).

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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