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-K - Ceasing to be an AMIT  

Operative provisions

SECTION 276-820   Effect of decrease  

276-820(1)    
This section applies if there is a decrease as mentioned in paragraph 276-810(2)(b) .

276-820(2)    
If the character mentioned in subsection 276-810(2) relates to assessable income:


(a) in the case of a character of:


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

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

treat half the amount of the decrease as a *capital loss of the trust for the discovery year; or


(b) in the case of a character of:


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

(ii) a capital gain (other than a discount capital gain) from a CGT asset that is not taxable Australian property;

treat the amount of the decrease as a capital loss of the trust for the discovery year; or


(c) in any other case - treat the amount of the decrease as a deduction of the trust for the discovery year.

276-820(3)    
If that character relates to *exempt income, treat the amount of the decrease as reducing the exempt income of the trust for the discovery year.

276-820(4)    
If that character relates to *non-assessable non-exempt income, treat the amount of the decrease as reducing the non-assessable non-exempt income of the trust for the discovery year.

276-820(5)    
If that character relates to a *tax offset, treat the amount of the decrease as reducing the tax offset or offsets (the existing offset or offsets ) of the trust for the discovery year of a kind corresponding to that character.

276-820(6)    
If that character relates to a *tax offset and exceeds the total of the existing offset or offsets (before the reduction under subsection (5)):


(a) unless paragraph (b) applies - the trustee is liable to pay tax at the rate declared by the Parliament on the excess; or

Note:

The tax is imposed by the Income Tax (Attribution Managed Investment Trusts - Offsets) Act 2016 and the rate of the tax is set out in that Act.


(b) if that character is the character of *foreign income tax paid that counts towards a tax offset under Division 770 - subsection (7) applies.

276-820(7)    
Increase the trust ' s assessable income for the discovery year by the sum of:


(a) the excess mentioned in subsection (6); and


(b) the product of:


(i) that excess; and

(ii) the *corporate tax gross-up rate.

Treat the amount of that increase as assessable income from a source other than an *Australian source.



 

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.