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-G - Shortfall and excess taxation  

Ensuring determined trust components are properly taxed

SECTION 276-415   Trustee taxed on amounts of determined trust component that are not reflected in determined member components  

276-415(1)  
An *AMIT has a shortfall under this subsection for an income year equal to the amount (if any) by which:


(a) the sum of all the *determined member components of all the *members of the AMIT of a particular character relating to assessable income, *exempt income or *non-assessable non-exempt income for the income year;

falls short of:


(b) the *determined trust component of that character of the AMIT for the income year. Liability to tax

276-415(2)  
The trustee is liable to pay income tax at the rate declared by the Parliament on the amount worked out as follows:


(a) first, work out the sum of each shortfall of the *AMIT under subsection (1) for the income year;


(b) next, work out the extent (if any) to which each of those shortfalls gives rise to a *rounding adjustment deficit (see subsection 276-310(2) );


(c) next, subtract the result of paragraph (b) from the result of paragraph (a);


(d) next, work out the extent (if any) to which the result of paragraph (c) is referable to one or more shortfalls under subsection 276-405(1) ;


(e) next, subtract the result of paragraph (d) from the result of paragraph (c).

Note:

The rate is set out in subsection 12(12) of the Income Tax Rates Act 1986 .

Gross-up for discount capital gain

276-415(3)  
Subsection (4) 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.

276-415(4)  


For the purposes of subsection (2), treat the amount of the shortfall under subsection (1) relating to the component as being double what it would be apart from this subsection.

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.