Income Tax Assessment Act 1997
This section applies if:
(a) you hold a *CGT asset in an income year that carries an entitlement to a distribution from an entity; and
(b) the entitlement to such a distribution is contingent upon the attainment of profits by the entity; and
(c) the entity satisfies any of these requirements:
(i) it is a *managed investment trust in relation to the income year;
(ii) it was a managed investment trust in relation to a previous income year; and
(d) you acquired the asset because of services you or your *associate provided, or will provide, to the entity; and
(e) you or your associate provided, or will provide, those services:
(i) as a manager of the entity; or
(ii) as an associate of a manager of the entity; or
(iii) as an employee of a manager of the entity; or
(iv) as an associate of an employee of a manager of the entity; and
(f) any of the following apply:
(i) you become entitled in the income year to such a distribution (regardless of whether the distribution is made immediately, or is to be made in the future);
(ii) a *CGT event happens in relation to the asset in the income year.
For the purposes of paragraph (1)(c), in determining whether the entity satisfies any of the requirements mentioned in that paragraph:
(a) disregard paragraph 275-10(3)(b) (requirement of not being a trading trust etc.); and
(b) disregard subsection 102T(16) of the Income Tax Assessment Act 1936 (exclusion of public trading trust etc.).
Include in your assessable income for the income year:
(a) the amount of the distribution (except to the extent that it represents a return of capital that you or your associate contributed in order for you to *acquire the asset); or
(b) the amount of your gain or profit (if any) on the *CGT event. 275-200(3)
Subsection (2) does not apply to the extent that the amount is included in your assessable income as:
(a) *ordinary income under section 6-5 ; or
(b) *statutory income under a section of this Act, other than a provision in Part 3-1 or 3-3 . 275-200(4)
An amount to which subsection (2) applies is taken, for the purposes of the *income tax laws, to have a source in Australia. For the purposes of this subsection, disregard subsection (3). 275-200(5)
You are entitled to a deduction for the income year for the amount of your loss (if any) on the *CGT event. 275-200(6)
Subsection (5) does not apply to the extent that you can deduct the amount under another provision of this Act. 275-200(7)
Subdivision 115-C does not apply to the amount of a distribution mentioned in subparagraph (1)(f)(i) if:
(a) that amount is included in your assessable income under subsection (2); or
(b) an amount referable to that amount is included in your assessable income under Division 6 of Part III of the Income Tax Assessment Act 1936 .
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