Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 59 - Particular amounts of non-assessable non-exempt income  

Operative provisions  

SECTION 59-35  

59-35   Amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs  
An amount of ^* ordinary income of an entity is not assessable income and not ^* exempt income if:

(a) the amount would be a mutual receipt, but for:

(i) the entity ' s constituent document preventing the entity from making any ^* distribution, whether in money, property or otherwise, to its members; or

(ii) the entity ' s constituent document providing for the entity to issue MCIs (within the meaning of the Corporations Act 2001 ) or to pay ^* dividends in respect of MCIs; or

(iii) the entity having issued one or more MCIs (within the meaning of the Corporations Act 2001 ) or having paid dividends in respect of one or more MCIs; and

(b) apart from this section, the amount would be assessable income only because of section 6-5 .