Document ID: chunk:federal_register_of_legislation:C2019C00124:clause:1_1:p11
Version: federal_register_of_legislation:C2019C00124
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 11/27)
Character Range: 32906–35611

not made the mistake.
 If the member makes a choice under subsection (2), the amount of the determined member component will be determined according to the amount of the trust component.
 (5) The choice must:
 (a) be in writing; and
 (b) state the following matters:
 (i) the income year to which the choice relates;
 (ii) what the *member considers to be the member's *member component of that character for the income year;
 (iii) the reason why the member considers that the *determined member component of that character for the income year does not accord with subsections 276‑210(2), (3) and (4).
 (6) The way the *member's *income tax return is prepared is sufficient evidence of the making of the choice.
 (7) The notice must:
 (a) be in writing; and
 (b) state the matters mentioned in paragraph (5)(b).

276‑210  Meaning of member component
 (1) This section applies to a *member of an *AMIT in respect of an income year and sets out how to work out the member's *member components for the year.

Meaning of member component
 (2) The *member's member component of a character is so much of the *AMIT's *determined trust component of that character as is attributable to the *membership interests in the AMIT held by the member, worked out in accordance with the requirements in subsections (3) and (4).

Attribution must be fair and reasonable and accord with constituent documents
 (3) The attribution must be worked out on a fair and reasonable basis, in accordance with the constituent documents of the *AMIT. This requirement is subject to the requirement in subsection (4).

Attribution must not involve streaming of character amounts
 (4) The attribution must not attribute any part of a *determined trust component of a particular character to a *member's *membership interests because of the tax characteristics of the member.

Safe harbour rules
 (5) Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects the fact that:
 (a) the constituent documents of the *AMIT give the trustee of the AMIT the power to direct an amount arising from the sale of an asset to a particular *member, if:
 (i) the member redeems one or more *membership interests in the AMIT; and
 (ii) the direction of the amount is made to fund the redemption; and
 (b) the trustee exercises that power.
 (6) Without limiting the scope of the requirements in subsection (3) and (4), an amount does not fail to be worked out in accordance with those requirements as mentioned in subsection (2) merely because the amount reflects the fact that:
 (a) either: