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 842-245  

842-245   Pre-2012 non-IMR partnership net income and pre-2012 non-IMR partnership loss  

A partnership ' s pre-2012 non-IMR partnership net income or pre-2012 non-IMR partnership loss in relation to an income year is determined by calculating the net income or partnership loss of the partnership as follows:

(a) disregard the pre-2012 IMR income and pre-2012 IMR deduction of the partnership for the income year;

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

(c) if the partnership is a beneficiary of a trust - then:

(i) for the purposes of applying Division 6 of Part III of the Income Tax Assessment Act 1936 to the 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 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 );

(d) if the partnership is a partner in another partnership - for the purposes of applying Division 5 of Part III of the Income Tax Assessment Act 1936 to the partner, replace the references in that Division 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 partnership may include a share of the net income of another partnership. Where there is a chain of partnerships, these calculations are applied to each partnership in the chain.