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 unders and overs are properly taxed

SECTION 276-425   Trustee taxed on amounts of over of character relating to tax offset not properly carried forward  

276-425(1)    
An *AMIT for an income year has a shortfall under this subsection for the income year equal to the amount (if any) by which:

(a) an *over of the AMIT of a character relating to a *tax offset in the income year relating to an earlier income year (the base year ) (as worked out by the trustee on the basis of the trustee ' s knowledge at the discovery time mentioned in subsection 276-345(2) );

falls short of:

(b) what the over would have been if it had been worked out on the basis of what the trustee should have known at that time.

Liability to tax

276-425(2)    
The trustee is liable to pay tax at the rate declared by the Parliament on the amount that is the sum of each shortfall of the *AMIT under subsection (1) for the income year.

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.

Adjustment for later overs relating to the same base year

276-425(3)    
If there is a shortfall under subsection (1) for a particular character for an income year, for the purposes of applying paragraph 276-345(3)(b) (base year running balance) to a later income year, decrease the amount mentioned in subparagraph 276-345(3)(b)(ii) (previous discovery year amount) for that character by the amount of the shortfall.

276-425(4)    
Subsection (5) applies if:

(a) there is a shortfall under subsection (1) of a particular character relating to a *tax offset for an income year; and

(b) the *AMIT has an *over of that character in a later income year relating to the base year mentioned in subsection (1); and

(c) the amount mentioned in paragraph (1)(b) is reflected (in whole or in part) in the amount of the over.

276-425(5)    
Reduce the shortfall by the extent to which the *over in the later income year reflects the amount mentioned in paragraph (1)(b).