Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p3
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 3/13)
Character Range: 10639–13216

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 of the fund (or referable to an 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 an income year if the beneficiary:
 (a) is not a resident of Australia at any time during the income year; and
 (b) is not a trust or partnership at any time during the income year (other than a *foreign superannuation fund).
Note: A trust that is an IMR foreign fund is subject to the general tax rules that apply to trusts, subject to the modifications in this Subdivision: see Division 6 of Part III of the Income Tax Assessment Act 1936. Also see section 842‑225 of this Act, which deals with trustees of IMR foreign funds.

Adjustments to calculation of taxable income, tax loss or net capital loss
 (3) In working out the beneficiary's taxable income, *tax loss or *net capital loss for the income year:
 (a) for the purposes of applying Division 6 of Part III of the Income Tax Assessment Act 1936 to the beneficiary, replace the references in that Division to share of the net income with references to share of the non‑IMR net income (within the meaning of subsection 842‑260(1) of the Income Tax Assessment Act 1997); and
 (b) for the purposes of applying subsections 98A(1) and (3) of Division 6 of Part III of the Income Tax Assessment Act 1936 to the beneficiary, replace the references in those subsections to individual interest of the beneficiary in the net income with references to individual interest of the beneficiary in the non‑IMR net income (within the meaning of subsection 842‑260(1) of the Income Tax Assessment Act 1997); and
 (c) for the purposes of applying Division 6E of Part III of the Income Tax Assessment Act 1936 to the beneficiary, replace the references in that Division to Division 6E net income with references to non‑IMR Division 6E net income (within the meaning of 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