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-C - Taxation etc. of member components  

Special rule for interposed custodian

SECTION 276-115   Custodian interposed between AMIT and member  

276-115(1)    
This section applies if:

(a) a trust that is a *custodian is a *member of an *AMIT in respect of an income year; and

(b) the custodian has, for the income year, a *determined member component of a particular character for the AMIT; and

(c) the custodian is interposed between the AMIT and another entity (the subsequent recipient ); and

(d) the subsequent recipient:

(i) starts to have, at a time in the income year, an entitlement to an amount that is reasonably attributable to all or part of the determined member component; or

(ii) would start to have, at a time in the income year, such an entitlement if the determined member component were an actual payment of an amount.

276-115(2)    
For the purposes of this Subdivision, reduce the *custodian ' s *determined member component by the amount of the entitlement mentioned in subparagraph (1)(d)(i) or (ii).

Note:

This subsection may operate to reduce the amount of the determined member component multiple times if there is more than one subsequent recipient in respect of which the requirements in paragraphs (1)(c) and (d) are satisfied.

276-115(3)    
For the purposes of this Subdivision:

(a) treat the subsequent recipient as being a *member of the *AMIT in respect of the income year; and

(b) treat the subsequent recipient as having, for the income year, a *determined member component for the AMIT that:

(i) is of the character mentioned in paragraph (1)(b); and

(ii) is equal to the amount of the entitlement mentioned in subparagraph (1)(d)(i) or (ii).