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-C - Taxation etc. of member components  

Foreign resident members - taxation of trustee and corresponding tax offset for members

SECTION 276-105   Trustee taxed on foreign resident ' s determined member components  

276-105(1)    
This section applies if:

(a) a *member of an *AMIT in respect of an income year has, for the income year, a *determined member component of a character relating to assessable income in respect of the AMIT; and

(b) either:

(i) unless subparagraph (ii) applies - the member is a foreign resident at the end of the income year; or

(ii) if the member is, in respect of that determined member component, a beneficiary in the capacity of a trustee of another trust - a trustee of the other trust is a foreign resident at the end of the income year; and

(c) the AMIT is not a *withholding MIT.

276-105(2)    
The trustee of the *AMIT is to be assessed and is liable to pay income tax:

(a) if subparagraph (1)(b)(i) applies and the *member is not a company - in respect of the amount mentioned in subsection (3) as if it were the income of an individual and were not subject to any deduction; or

(b) if subparagraph (1)(b)(i) applies and the member is a company - in respect of the amount mentioned in subsection (3) at the rate declared by the Parliament for the purposes of this paragraph; or

(c) if subparagraph (1)(b)(ii) applies - in respect of the amount mentioned in subsection (4) or (5) at the rate declared by the Parliament for the purposes of this paragraph.

Note:

The rates are set out in the following provisions:

(a) for paragraph (a) - subsection 12(6A) of the Income Tax Rates Act 1986 and Schedule 10A to that Act;

(b) for paragraph (b) - paragraph 28A(a) of that Act;

(c) for paragraph (c) - paragraph 28A(b) of that Act.

276-105(3)    
The amount is the *determined member component, to the extent that the component:

(a) is attributable to a period when the *member was an Australian resident; or

(b) is attributable to a period when the member was not an Australian resident and is attributable to sources in Australia.

276-105(4)    
The amount is the *determined member component, to the extent that the component is attributable to sources in Australia.

276-105(5)    
For the purposes of subsection (4), treat the entire amount of the *determined member component as not being attributable to sources in Australia if it is of the character of:

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

(b) a *capital gain (other than a discount capital gain) from a CGT asset that is not taxable Australian property.

Exception for component reflected in AMIT DIR payment or fund payment

276-105(6)    
Subsection (2) does not apply to the extent that the *determined member component is reflected in an *AMIT DIR payment or a *fund payment, if an amount in respect of the payment:

(a) has been withheld from the payment under Subdivision 12-F or 12-H in Schedule 1 to the Taxation Administration Act 1953 ; or

(b) would be so withheld apart from an exemption from a requirement to withhold under Subdivision 12-F in that Schedule; or

(c) has been paid under Division 12A in that Schedule; or

(d) would be so paid apart from an exemption from a requirement to withhold under Subdivision 12-F in that Schedule.

Gross-up for discount capital gain

276-105(7)    
Subsection (8) applies if a *determined member component is of the character of:

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

(b) a discount capital gain from a CGT asset that is not taxable Australian property.

276-105(8)    
For the purposes of this section, treat the amount of the component as being double what it would be apart from this subsection.