Income Tax Assessment Act 1997
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Hide history noteSECTION 276-820 Effect of decrease 276-820(1)
This section applies if there is a decrease as mentioned in paragraph 276-810(2)(b) .
276-820(2)
If the character mentioned in subsection 276-810(2) relates to assessable income:
(a) in the case of a character of:
(i) a *discount capital gain from a *CGT asset that is *taxable Australian property; or
(ii) a discount capital gain from a CGT asset that is not taxable Australian property;
treat half the amount of the decrease as a *capital loss of the trust for the discovery year; or
(b) in the case of a character of:
(i) a *capital gain (other than a discount capital gain) from a CGT asset that is taxable Australian property; or
(ii) a capital gain (other than a discount capital gain) from a CGT asset that is not taxable Australian property;
treat the amount of the decrease as a capital loss of the trust for the discovery year; or
(c) in any other case - treat the amount of the decrease as a deduction of the trust for the discovery year.
276-820(3)
If that character relates to *exempt income, treat the amount of the decrease as reducing the exempt income of the trust for the discovery year.
276-820(4)
If that character relates to *non-assessable non-exempt income, treat the amount of the decrease as reducing the non-assessable non-exempt income of the trust for the discovery year.
276-820(5)
If that character relates to a *tax offset, treat the amount of the decrease as reducing the tax offset or offsets (the existing offset or offsets ) of the trust for the discovery year of a kind corresponding to that character.
276-820(6)
If that character relates to a *tax offset and exceeds the total of the existing offset or offsets (before the reduction under subsection (5)):
(a) unless paragraph (b) applies - the trustee is liable to pay tax at the rate declared by the Parliament on the excess; or
Note:
The tax is imposed by the Income Tax (Attribution Managed Investment Trusts - Offsets) Act 2016 and the rate of the tax is set out in that Act.
(b) if that character is the character of *foreign income tax paid that counts towards a tax offset under Division 770 - subsection (7) applies.
276-820(7)
Increase the trust ' s assessable income for the discovery year by the sum of:
(a) the excess mentioned in subsection (6); and
(b) the product of:
(i) that excess; and
(ii) the *corporate tax gross-up rate.
Treat the amount of that increase as assessable income from a source other than an *Australian source.
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