Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (53 of 2016)
Schedule 8 Application and transitional provisions etc.
Income Tax (Transitional Provisions) Act 1997
3 At the end of Part 3-25
Add:
Division 276 - Attribution managed investment trusts
Table of Subdivisions
276-A Application
276-B Starting income year
276-T Becoming an AMIT: unders and overs
276-U Becoming an AMIT: CGT treatment of payment by trustee of AMIT
Subdivision 276-A - Application
Table of sections
276-5 Application of Division 276
276-5 Application of Division 276
Division 276 of the Income Tax Assessment Act 1997 as inserted in that Act by the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (the amending Act ) applies as set out in subitem 1(1) of Schedule 8 to the amending Act.
Subdivision 276-B - Starting income year
Table of sections
276-25 Starting income year
276-25 Starting income year
In this Division:
starting income year means the first income year starting on or after:
(a) unless paragraph (b) or (c) applies - 1 July 2017; or
(b) if the trustee of the trust has made a choice for the purposes of paragraph 1(1)(b) of Schedule 8 to the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 - 1 July 2015; or
(c) if the trustee of the trust has made a choice for the purposes of subparagraph 276-10(1)(e)(i) in respect of the 2016-17 income year - 1 July 2016.
Subdivision 276-T - Becoming an AMIT: unders and overs
Table of sections
276-700 Application of Subdivision to MIT that becomes AMIT
276-705 Accounting for unders and overs for base years before becoming an AMIT
276-700 Application of Subdivision to MIT that becomes AMIT
This Subdivision applies if:
(a) a managed investment trust becomes an AMIT for the starting income year; and
(b) the trust existed in an earlier income year (the base year ); and
(c) the trust is an AMIT for an income year (the discovery year ) that is the starting income year or a later income year.
276-705 Accounting for unders and overs for base years before becoming an AMIT
(1) This section applies if the trust has an under or over of a character in the discovery year relating to the base year.
(2) For the purposes of subsection (1):
(a) assume that the trust is an AMIT for the base year and every later year before the starting income year; and
(b) if, at a time, the trust sent its members distribution statements for an income year that is prior to the starting income year - assume that the trust sent those members AMMA statements for that income year at that time.
(3) For the purposes of Division 276 of the Income Tax Assessment Act 1997, treat the under or over mentioned in subsection (1) as an under or over of the AMIT, in the discovery year relating to the base year, of the character mentioned in that subsection.
(4) If:
(a) had the under or over mentioned in subsection (1) been discovered before the starting income year, this Act would have operated to produce a particular effect (the pre-AMIT scheme effect ) for the base year in relation to the amount or amounts reflected in the under or over; and
(b) subsection (3) accounts for the pre-AMIT scheme effect;
treat this Act as not operating to produce the pre-AMIT scheme effect for the base year.
Note: Subsection (3) continues to operate in relation to the under or over.
Subdivision 276-U - Becoming an AMIT: CGT treatment of payment by trustee of AMIT
Table of sections
276-750 Payment by trustee on or after 1 July 2011 - certain CGT provisions etc. apply for the purposes of working out non-assessable part for first income year of AMIT
276-755 Payment by trustee before 1 July 2011 - limit on amendment of assessment
276-750 Payment by trustee on or after 1 July 2011 - certain CGT provisions etc. apply for the purposes of working out non-assessable part for first income year of AMIT
(1) This section applies if:
(a) a trust becomes an AMIT for an income year; and
(b) the trustee of the trust made a payment to an entity at a time:
(i) on or after 1 July 2011; and
(ii) before the start of the income year mentioned in paragraph (a).
(2) Subsection (3) applies for the purpose of:
(a) working out whether CGT event E4 happens because of the payment; and
(b) working out the amount (if any) of the entity's capital gain under subsection 104-70(4) of the Income Tax Assessment Act 1997.
(3) For the purpose of working out the amount of the non-assessable part mentioned in paragraph 104-70(1)(b), treat the following provisions as being in operation at the time the payment was made:
(a) sections 104-107F and 104-107G of the Income Tax Assessment Act 1997;
(b) any other provision of that Act, to the extent that it relates to the operation of the provisions mentioned in paragraph (a).
(4) Subsection (3) does not apply to the extent (if any) that the entity, in the income tax return that it lodged for the income year in which the payment was made, included the amount of the payment in its assessable income for that income year.
(5) For the purposes of section 118-20 of the Income Tax Assessment Act 1997, treat this section as being in Part 3-1 of that Act.
Note: Section 118-20 deals with reducing capital gains if an amount is otherwise assessable.
276-755 Payment by trustee before 1 July 2011 - limit on amendment of assessment
(1) This section applies if:
(a) a trust becomes an AMIT for an income year; and
(b) the trustee of the trust made a payment to an entity at a time before 1 July 2011.
(2) The Commissioner cannot amend the entity's assessment for the income year in which the payment was made in a particular way if:
(a) the effect of the amendment would be to increase the entity's assessable income for that income year; and
(b) the Commissioner could not amend the assessment in that way if the following provisions were in operation at the time the payment was made:
(i) sections 104-107F, 104-107G and 104-107H of the Income Tax Assessment Act 1997;
(ii) any other provision of that Act, to the extent that it relates to the operation of the provisions mentioned in subparagraph (i); and
(c) the entity has not requested the Commissioner to amend the assessment in that way.