Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-25 - PARTICULAR KINDS OF TRUSTS  

Division 276 - Attribution managed investment trusts  

Subdivision 276-U - Becoming an AMIT: CGT treatment of payment by trustee of AMIT  

SECTION 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  

276-750(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).

276-750(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 .

276-750(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).

276-750(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.

276-750(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.