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-D - Member components  

Member-level concepts

SECTION 276-210   Meaning of member component  

276-210(1)    
This section applies to a *member of an *AMIT in respect of an income year and sets out how to work out the member ' s *member components for the year.

Meaning of member component

276-210(2)    
The *member ' s member component of a character is so much of the *AMIT ' s *determined trust component of that character as is attributable to the *membership interests in the AMIT held by the member, worked out in accordance with the requirements in subsections (3) and (4).

Attribution must be fair and reasonable and accord with constituent documents

276-210(3)    
The attribution must be worked out on a fair and reasonable basis, in accordance with the constituent documents of the *AMIT. This requirement is subject to the requirement in subsection (4).

Attribution must not involve streaming of character amounts

276-210(4)    
The attribution must not attribute any part of a *determined trust component of a particular character to a *member ' s *membership interests because of the tax characteristics of the member.

Safe harbour rules

276-210(5)    
Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects the fact that:

(a) the constituent documents of the *AMIT give the trustee of the AMIT the power to direct an amount arising from the sale of an asset to a particular *member, if:

(i) the member redeems one or more *membership interests in the AMIT; and

(ii) the direction of the amount is made to fund the redemption; and

(b) the trustee exercises that power.

276-210(6)    
Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects the fact that:

(a) either:

(i) an amount of an *under, relating to a base year (as mentioned in subsection 276-345(1) ) increases a *trust component of the *AMIT for a later income year under section 276-305 ; or

(ii) an amount of an *over, relating to a base year (as mentioned in subsection 276-345(1) ) decreases a trust component of the AMIT for a later income year under section 276-305 ; and

(b) an entity is a *member of the AMIT at a time in the later income year, but was not a member of the AMIT in respect of the base year.

276-210(7)    
Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects the fact that:

(a) the trustee made a *capital gain or *capital loss in an income year (for the purposes of working out the amount of a *trust component of the *AMIT for an income year in accordance with the rules in section 276-265 ); and

(b) an entity was a *member of the AMIT in respect of the income year, but was not a member of the AMIT at the time the capital gain or capital loss was made.