Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-25 - PARTICULAR KINDS OF TRUSTS  

Division 275 - Australian managed investment trusts: general  

Subdivision 275-C - Carried interests in managed investment trusts  

SECTION 275-200   Gains and losses etc. from carried interests in managed investment trusts reflected in assessable income or deduction  

275-200(1)    
This section applies if:

(a) you hold a *CGT asset in an income year that carries an entitlement to a distribution from an entity; and

(b) the entitlement to such a distribution is contingent upon the attainment of profits by the entity; and

(c) the entity satisfies any of these requirements:

(i) it is a *managed investment trust in relation to the income year;

(ii) it was a managed investment trust in relation to a previous income year; and

(d) you acquired the asset because of services you or your *associate provided, or will provide, to the entity; and

(e) you or your associate provided, or will provide, those services:

(i) as a manager of the entity; or

(ii) as an associate of a manager of the entity; or

(iii) as an employee of a manager of the entity; or

(iv) as an associate of an employee of a manager of the entity; and

(f) any of the following apply:

(i) you become entitled in the income year to such a distribution (regardless of whether the distribution is made immediately, or is to be made in the future);

(ii) a *CGT event happens in relation to the asset in the income year.

275-200(1A)    

For the purposes of paragraph (1)(c), in determining whether the entity satisfies any of the requirements mentioned in that paragraph:

(a) disregard paragraph 275-10(3)(b) (requirement of not being a trading trust etc.); and

(b) disregard subsection 102T(16) of the Income Tax Assessment Act 1936 (exclusion of public trading trust etc.).

275-200(2)    
Include in your assessable income for the income year:

(a) the amount of the distribution (except to the extent that it represents a return of capital that you or your associate contributed in order for you to *acquire the asset); or

(b) the amount of your gain or profit (if any) on the *CGT event.

275-200(3)    
Subsection (2) does not apply to the extent that the amount is included in your assessable income as:

(a) *ordinary income under section 6-5 ; or

(b) *statutory income under a section of this Act, other than a provision in Part 3-1 or 3-3 .

275-200(4)    
An amount to which subsection (2) applies is taken, for the purposes of the *income tax laws, to have a source in Australia. For the purposes of this subsection, disregard subsection (3).

275-200(5)    
You are entitled to a deduction for the income year for the amount of your loss (if any) on the *CGT event.

275-200(6)    
Subsection (5) does not apply to the extent that you can deduct the amount under another provision of this Act.

275-200(7)    
Subdivision 115-C does not apply to the amount of a distribution mentioned in subparagraph (1)(f)(i) if:

(a) that amount is included in your assessable income under subsection (2); or

(b) an amount referable to that amount is included in your assessable income under Division 6 of Part III of the Income Tax Assessment Act 1936 .