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.