Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p5
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/13)
Character Range: 15262–17928

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 resident at any time during the income year; and
 (b) is not a trust or a partnership at any time during the income year (other than a *foreign superannuation fund).
Note: A partnership that is an IMR foreign fund is subject to the general tax rules that apply to partnerships, subject to the modifications set out in this Subdivision: see Division 5 of Part III of the Income Tax Assessment Act 1936.

Adjustments to calculation of taxable income, tax loss or net capital loss
 (3) In working out the partner's taxable income, *tax loss or *net capital loss for the income year:
 (a) for the purposes of applying Division 5 of Part III of the Income Tax Assessment Act 1936 to the partner, replace the references in that Division to the individual interest of the partner in the net income of the partnership with references to the individual interest of the partner in the non‑IMR partnership net income (within the meaning of section 842‑265 of the Income Tax Assessment Act 1997) of the partnership; and
 (b) for the purposes of applying Division 5 of Part III of the Income Tax Assessment Act 1936 to the partner, replace the references in that Division to the individual interest of the partner in the partnership loss with references to the individual interest of the partner in the non‑IMR partnership loss (within the meaning of section 842‑265 of the Income Tax Assessment Act 1997); and
 (c) disregard an amount to the extent that it is referable to an *IMR capital gain or an*IMR capital loss.

842‑225  Treatment of trustee of an IMR foreign fund

Objects
 (1) The object of this section is to ensure that the following provisions interact appropriately with the tax concessions mentioned in paragraphs 842‑210(1)(a) and (b), paragraphs 842‑215(1)(a) and (b) and paragraphs 842‑220(1)(a) and (b):
 (a) subsection 115‑220(2);
 (b) section 115‑225;
 (c) section 98 of the Income Tax Assessment Act 1936;
 (d) section 99E of the Income Tax Assessment Act 1936.
Note: Division 6 of Part III of the Income Tax Assessment Act 1936, Division 115 of Part 3‑1 of this Act, and all other provisions of those Acts apply to the trustee of an IMR foreign fund, subject to the modifications in this section.

Applying subsection 115‑220(2)
 (2) For the purposes of applying subsection 115‑220(2) to the beneficiary:
 (a) disregard a *capital gain of the *IMR foreign fund to the extent the capital gain is an *IMR capital gain;