Document ID: chunk:federal_register_of_legislation:C2019A00034:clause:1_11:p2
Version: federal_register_of_legislation:C2019A00034
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 2/16)
Character Range: 13505–16211

participation interest held by the external entity in each of the arrangement entities as being equal to the lowest participation interest amount.
 (8) Each of the entities that entered into the *cross staple arrangement is a stapled entity in relation to the cross staple arrangement.

12‑437  Meaning of MIT cross staple arrangement income
 (1) This section applies if:
 (a) an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust's *net income, or in the case of an *AMIT, the trust's total assessable income, for the income year); and
 (b) the amount mentioned in paragraph (a) is, or is attributable to, an amount derived, received or made from another entity (the second entity); and
 (c) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12‑405(1)(a), (b), (c), (d) or (e).
 (2) The amount is MIT cross staple arrangement income of the *managed investment trust if:
 (a) either:
 (i) the *managed investment trust is an *asset entity in relation to the income year and is a *stapled entity in relation to a *cross staple arrangement; or
 (ii) the second entity is an asset entity in relation to the income year and is a stapled entity in relation to a cross staple arrangement; and
 (b) either:
 (i) if subparagraph (a)(i) applies—the second entity is an *operating entity in relation to the income year and is a stapled entity in relation to the cross staple arrangement; or
 (ii) if subparagraph (a)(ii) applies—another entity (the third entity) is an operating entity in relation to the income year and is a stapled entity in relation to the cross staple arrangement; and
 (c) either:
 (i) if subparagraph (a)(i) applies—the amount is derived, received or made by the managed investment trust from the second entity; or
 (ii) if subparagraph (a)(ii) applies—the amount is attributable to an amount derived, received or made by the second entity from the third entity.
 (3) The amount is not MIT cross staple arrangement income of the *managed investment trust under subsection (2) to the extent that it is attributable to an amount that satisfies the following requirements:
 (a) the amount is derived, received or made by a *stapled entity in relation to the *cross staple arrangement from an entity that is not a stapled entity in relation to the cross staple arrangement;
 (b) the amount mentioned in paragraph (a) is *rent from land investment.
 (4) The amount is not MIT cross staple arrangement income of the *managed investment trust under subsection (2) to the extent that it is, or is attributable to, an amount covered by subsection