Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p4
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 4/13)
Character Range: 12967–15501

subsection 842‑260(2) of the Income Tax Assessment Act 1997); and
 (d) for the purposes of applying subsection 115‑215(3) to the beneficiary, replace the reference in that subsection to each *capital gain of the trust estate with a reference to each capital gain of the trust estate that is a *non‑IMR net capital gain (or is referable to a non‑IMR net capital gain of the trust estate); and
 (e) for the purposes of applying section 115‑225 to the beneficiary:
 (i) replace references in that section to net income of the trust estate with references to *non‑IMR net income of the trust estate; and
 (ii) replace the reference in that section to *net capital gain (if any) with a reference to *non‑IMR net capital gain (if any).
 (4) For the purposes of applying paragraph 115‑225(1)(a) to the beneficiary:
 (a) disregard a *capital gain of the *IMR foreign fund to the extent the capital gain is an *IMR capital gain; and
 (b) disregard an *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 an IMR capital loss 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).

842‑220  Treatment of foreign resident partner that is not a trust or partnership

Objects
 (1) The objects of this section are to ensure that:
 (a) a foreign resident partner of an *IMR foreign fund in relation to an income year is not subject to any Australian income tax in respect of *IMR income or an *IMR capital gain (or in respect of an amount that is referable to IMR income or an IMR capital gain) for the income year; and
 (b) the foreign resident partner 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) IMR income of the fund (or referable to IMR income of the fund); or
 (ii) an IMR capital gain (or referable to an IMR capital gain); and
 (c) this section does not provide any tax concession to an Australian resident that invests in the fund (whether directly or indirectly through one or more interposed entities).

Application
 (2) This section applies to a partner in a partnership in relation to an income year if the partner:
 (a) is not an Australian