Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:2_1:p2
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 2/11)
Character Range: 41460–44043

pre‑2012 IMR income for the income year as non‑assessable non‑exempt income; and
 (b) disregard the corporate tax entity's pre‑2012 IMR deduction for the income year; and
 (c) disregard the corporate tax entity's pre‑2012 IMR capital gain for the income year; and
 (d) disregard the corporate tax entity's pre‑2012 IMR capital loss for the income year.

Fraud
 (4)  Subsection (3) does not apply if the Commissioner has reason to believe that there has been fraud by the corporate tax entity 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 corporate tax entity that an audit or compliance review would be undertaken in relation to any income year.

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 the 2010‑11 income year or an earlier income year is not subject to Australian income tax in respect of pre‑2012 IMR income or a pre‑2012 IMR capital gain of the fund (or in respect of an amount that is referable to pre‑2012 IMR income or a pre‑2012 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) pre‑2012 IMR income of the fund (or referable to pre‑2012 IMR income of the fund); or
 (ii) a pre‑2012 IMR capital gain of the fund (or referable to a pre‑2012 IMR capital gain of the fund); 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 beneficiary of a trust in relation to the 2010‑11 income year, or an earlier income year, if:
 (a) the beneficiary is not a resident of Australia at any time during the income year; and
 (b) the beneficiary is not a trust or partnership at any time during the income year (other than a foreign superannuation fund); and
 (c) neither the trust nor the beneficiary has lodged an income tax return in relation to the 2010‑11 income year, or any earlier income year, before the day that item 1 of Schedule 1 to the Tax Laws Amendment (Investment Manager Regime) Act 2012 commences; and
 (d) the Commissioner did not, before 18 December 2010, make an