Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 842 - Exempt Australian source income and gains of foreign residents  

Subdivision 842-I - Investment manager regime  

Independent Australian fund managers

SECTION 842-245   Meaning of independent Australian fund manager  

842-245(1)  
An entity (the managing entity ) is an independent Australian fund manager for an *IMR entity for an income year if:


(a) the managing entity is an Australian resident; and


(b) the managing entity carries out investment management activities for the IMR entity in the ordinary course of *business; and


(c) the managing entity ' s remuneration for carrying out those activities is what the remuneration would be between parties dealing at *arm ' s length; and


(d) one or more of the following applies:


(i) the IMR entity is an *IMR widely held entity;

(ii) 70% or less of the managing entity ' s income, for the income year, is income received from the IMR entity or entities *connected with the IMR entity;

(iii) if the managing entity has been carrying out investment management activities for 18 months or less - it takes all reasonable steps to ensure that the proportion of its income received from the IMR entity or entities connected with the IMR entity, for the income year in which that 18 month period ends, will be reduced to 70% or less.

842-245(2)  
In applying paragraph (1)(c), have regard to the documents covered by section 815-135 .


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