Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:2_1:p6
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 6/11)
Character Range: 50991–53623

842‑245 of the Income Tax (Transitional Provisions) Act 1997); and
 (c) disregard the partner's pre‑2012 IMR capital gain or an amount that is referable to a pre‑2012 IMR capital gain (within the meaning of subsection 842‑270(3) of the Income Tax Assessment Act 1997) or pre‑2012 IMR capital loss or an amount that is referable to a pre‑2012 IMR capital loss (within the meaning of that term in section 842‑235 of this Act).

Fraud
 (4)  Subsection (3) does not apply if the Commissioner has reason to believe that there has been fraud by the partnership in relation to any income year.

Audit or compliance review
 (5) Subsection (3) does not apply if before 18 December 2010 the Commissioner notified the partnership that an audit or compliance review would be undertaken in relation to any income year.

842‑225  Treatment of trustee of an IMR foreign fund

Objects
 (1) The object of this section is to ensure that the following provisions interact appropriately with the tax concessions mentioned in subsection 842‑210(1), paragraphs 842‑215(1)(a) and (b) and paragraphs 842‑220(1)(a) and (b) in respect of the 2010‑11 income year or an earlier income year:
 (a) subsection 115‑220(2) of the Income Tax Assessment Act 1997;
 (b) section 115‑225 of the Income Tax Assessment Act 1997;
 (c) section 98 of the Income Tax Assessment Act 1936;
 (d) section 99E of the Income Tax Assessment Act 1936.
Note: Division 6 of Part III of the Income Tax Assessment Act 1936, Division 115 of the Income Tax Assessment Act 1997, and all other provisions of those Acts apply to the trustee of an IMR foreign fund, subject to the modifications in this section.

Application
 (2) This section applies to the 2010‑11 income year or an earlier income year of a trustee of a trust that is an IMR foreign fund in relation to that income year.

Applying subsection 115‑220(2) of the Income Tax Assessment Act 1997
 (3) For the purposes of applying subsection 115‑220(2) of the Income Tax Assessment Act 1997 to the beneficiary:
 (a) disregard a capital gain of the IMR foreign fund to the extent that the capital gain is a pre‑2012 IMR capital gain; and
 (b) disregard a pre‑2012 IMR capital loss of the IMR foreign fund for the purposes of determining the amount of the capital gain remaining after applying steps 1 to 4 of the method statement in subsection 102‑5(1); and
 (c) disregard a net capital loss of the IMR foreign fund to the extent that it is attributable to a pre‑2012 IMR capital loss for the purposes of determining how much of a capital gain that is not a pre‑2012 IMR capital gain remains after applying steps 1 to 4 of the method