Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p2
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 2/13)
Character Range: 8267–10835

disregarding certain *capital gains and *capital losses; and
 (d) requiring foreign funds that seek to benefit from the tax concessions in this Subdivision to pass a widely held test and a concentration test to show that they are not controlled by a small group of investors.

842‑210  Treatment of IMR foreign fund that is a corporate tax entity

Objects
 (1) The objects of this section are to ensure that:
 (a) a *corporate tax entity that is an *IMR foreign fund in relation to an income year is not subject to any Australian income tax in respect of its *IMR income and *IMR capital gain for that income year; and
 (b) the corporate tax entity's *IMR deduction or *IMR capital loss in relation to an income year cannot be applied against the corporate tax entity's other income and gains; and
 (c) this section does not provide any tax concession to an Australian resident who invests in the corporate tax entity (whether directly or indirectly through one or more interposed entities).

Application
 (2) This section applies to a *corporate tax entity that is an *IMR foreign fund in relation to an income year.

Certain amounts disregarded
 (3) In working out the *corporate tax entity's taxable income, *tax loss or *net capital loss for the income year:
 (a) treat its *IMR income in relation to the income year as *non‑assessable non‑exempt income; and
 (b) disregard its *IMR deduction in relation to the income year; and
 (c) disregard its *IMR capital gain in relation to the income year; and
 (d) disregard its *IMR capital loss in relation to the income year.

Certain losses disregarded
 (4) The *corporate tax entity cannot *utilise a *tax loss or *net capital loss in relation to the income year, or in any future income year, to the extent the loss is attributable to *IMR income, an *IMR capital gain, an *IMR deduction or an *IMR capital loss.

842‑215  Treatment of foreign resident beneficiary that is not a trust or partnership

Objects
 (1) The objects of this section are to ensure that:
 (a) a foreign resident beneficiary of an *IMR foreign fund in relation to an income year is not subject to Australian income tax in respect of *IMR income or an *IMR capital gain of the fund (or in respect of an amount that is referable to IMR income or an IMR capital gain of the fund) for the income year; and
 (b) the foreign resident beneficiary of the fund is not able to claim a deduction or *utilise a *tax loss in relation to the income year to the extent that the deduction or tax loss was incurred or made in respect of an amount that is:
 (i)