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 12-444   CONCESSIONAL CROSS STAPLE RENT CAP - GENERAL  

12-444(1)  
This section applies if section 12-443 does not apply.

12-444(2)  
The concessional cross staple rent cap for an income year of the *managed investment trust is worked out as follows:


(a) first, work out a reasonable estimate of whichever of the following is applicable:


(i) if the relevant asset entity is a trust that is not an *AMIT - the relevant asset entity ' s *net income, or *tax loss, for the income year;

(ii) if the relevant asset entity is an AMIT - the sum of the relevant asset entity ' s *trust components with the character of assessable income, or the relevant asset entity ' s tax loss, for the income year;

(iii) if the relevant asset entity is a partnership - the relevant asset entity ' s net income, or partnership loss (within the meaning of section 90 of the Income Tax Assessment Act 1936 ), for the income year;


(b) next, work out a reasonable estimate of whichever of the following is applicable:


(i) if the relevant operating entity is a trust that is not an AMIT - the operating asset entity ' s net income, or tax loss, for the income year;

(ii) if the relevant operating entity is a partnership - the relevant operating entity ' s net income, or partnership loss (within the meaning of section 90 of the Income Tax Assessment Act 1936 ), for the income year;

(iii) otherwise - the relevant operating entity ' s taxable income or tax loss for the income year;


(c) next, add the results of paragraphs (a) and (b);


(d) next, multiply the result of paragraph (c) by 0.8;


(e) next, subtract the result of paragraph (a) from the result of paragraph (d);


(f) next, add the amount of *excepted MIT CSA income mentioned in subsection 12-441(1) to the result of paragraph (e).

If the result of paragraph (f) is a positive number, the concessional cross staple rent cap is that result. Otherwise, the concessional cross staple rent cap is nil.

12-444(3)  
For the purposes of paragraphs (2)(a) and (b):


(a) treat the amount of a *tax loss, or of a partnership loss (within the meaning of section 90 of the Income Tax Assessment Act 1936 ), as a negative number; and


(b) disregard any *tax loss for a previous income year of the relevant asset entity or relevant operating entity.


 

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