Income Tax (Transitional Provisions) Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 842 - Exempt Australian source income and gains of foreign residents  

Subdivision 842-I - Investment manager regime  

SECTION 842-240   Pre-2012 non-IMR net income , pre-2012 non-IMR Division 6E net income and pre-2012 non-IMR net capital gain  

842-240(1)    
A trust ' s pre-2012 non-IMR net income in relation to an income year is determined by calculating the net income of the trust as follows:

(a) for income years prior to the 2010-11 income year - disregard the pre-2012 IMR capital gain and pre-2012 IMR capital loss;

(b) disregard the pre-2012 IMR income and pre-2012 IMR deduction of the trust for the income year;

(c) disregard any amount that is included in the trust ' s assessable income under subsection 207-35(1) to the extent that the amount is attributable to pre-2012 IMR income of the trust for the income year;

(d) if the trust is a beneficiary of another trust - then:

(i) for the purposes of applying Division 6 of Part III of the Income Tax Assessment Act 1936 to the trust that is a beneficiary, replace the references in that Division to share of the net income with references to share of the pre-2012 non-IMR net income (within the meaning of subsection 842-240(1) of the Income Tax (Transitional Provisions) Act 1997 ); and

(ii) for the purposes of applying Division 6E of Part III of the Income Tax Assessment Act 1936 to the trust that is a beneficiary, replace references in that Division to Division 6E net income with references to pre-2012 non-IMR Division 6E net income (within the meaning of subsection 842-240(1) of the Income Tax (Transitional Provisions) Act 1997 );

(e) if the trust is a partner in a partnership - for the purposes of applying Division 5 of Part III of the Income Tax Assessment Act 1936 to the partner, replace the references to the individual interest of the partner in the partnership net income or partnership loss with references to the individual interest of the partner in the pre-2012 non-IMR partnership net income or pre-2012 non-IMR partnership loss (within the meaning of subsection 842-240(1) of the Income Tax (Transitional Provisions) Act 1997 ).

Note:

The net income of a trust may include a share of the net income of another trust. Where there is a chain of trusts, these calculations are applied to each trust in the chain.

Pre-2012 non-IMR Division 6E net income

842-240(2)    
A trust ' s pre-2012 non-IMR Division 6E net income in relation to an income year is determined by calculating the Division 6E net income (within the meaning of subsection 102UY(3) of the Income Tax Assessment Act 1936 ) of the trust as follows:

(a) disregard the pre-2012 IMR income and pre-2012 IMR deduction of the trust in relation to the income year;

(b) disregard the things mentioned in subparagraphs 102UW(b)(i) to (iii) of the Income Tax Assessment Act 1936 (which is about adjustments of Division 6 assessable amounts) in relation to the income year.

Pre-2012 non-IMR net capital gain

842-240(3)    
A trust ' s pre-2012 non-IMR net capital gain in relation to an income year is determined by calculating the net capital gain of the trust as follows:

(a) disregard the trust ' s pre-2012 IMR capital gain and pre-2012 IMR capital loss in relation to the income year;

(b) disregard any capital gain of the trust in relation to the income year that is referable to a pre-2012 IMR capital gain of another IMR foreign fund that is a trust.