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 276-420   Trustee taxed on amounts of under of character relating to assessable income not properly carried forward  

276-420(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 *under of the AMIT of a character relating to assessable income in the income year for 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 under 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

276-420(2)    
The trustee is liable to pay income 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 rate is set out in subsection 12(13) of the Income Tax Rates Act 1986 .

Adjustment for later unders relating to the same base year

276-420(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, increase the amount mentioned in subparagraph 276-345(3)(b)(ii) (previous discovery year amount) for that character by the amount of the shortfall.

276-420(4)    
Subsection (5) applies if:

(a) there is a shortfall under subsection (1) for a particular character for an income year; and

(b) the *AMIT has an *under of that character in a later income year for 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 under.

276-420(5)    
Reduce the shortfall by the extent to which the *under in the later income year reflects the amount mentioned in paragraph (1)(b).