Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p11
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 11/13)
Character Range: 29651–32187

is covered by this subsection if:
 (a) it is covered by item 3 of the table in section 855‑15 in relation to the fund; or
 (b) it is covered by item 4 of the table in section 855‑15 in relation to the fund because it is an option or right to *acquire a CGT asset covered by item 3 of that table in relation to the fund.

Partner's IMR capital gain or IMR capital loss
 (4) Where the *IMR foreign fund is a partnership, a *capital gain or *capital loss of a partner that arises in respect of the partner's interest in the fund is treated as an *IMR capital gain or an *IMR capital loss (as the case may be) to the extent that the capital gain or capital loss is made in respect of *CGT assets covered by subsection (3) which are also *financial arrangements covered by section 842‑245.

842‑260  Non‑IMR net income, non‑IMR Division 6E net income and non‑IMR net capital gain
 (1) A trust's non‑IMR net income in relation to an income year is determined by calculating the *net income of the trust as follows:
 (a) disregard the *IMR income and *IMR deduction of the trust for the income year;
 (b) disregard any amount that is included in the trust's assessable income under subsection 207‑35(1) to the extent that the amount is attributable to IMR income of the trust for the income year;
 (c) if the trust is a beneficiary of another trust—then:
 (i) 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
 (ii) for the purposes of applying Division 6E of Part III of the Income Tax Assessment Act 1936 to the beneficiary, replace 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);
 (d) if the trust is a partner in a partnership—for the purposes of applying Division 5 of Part III of the Income Tax Assessment Act 1936 to the partner, replace references in that Division to the individual interest of the partner in the partnership net income or partnership loss with references to the individual interest of the partner in the non‑IMR partnership net income or non‑IMR partnership loss (within the meaning of those terms in section 842‑265 of the Income Tax Assessment Act 1997).
Note:  The net income of a trust may include a share