Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:2_1:p4
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 4/11)
Character Range: 46264–48819

beneficiary:
 (i) replace references in that section to net income of the trust estate with references to pre‑2012 non‑IMR net income of the trust estate (within the meaning of subsection 842‑240(1) of the Income Tax (Transitional Provisions) Act 1997); and
 (ii) replace the reference in that section to net capital gain (if any) with a reference to pre‑2012 non‑IMR net capital gain (if any) (within the meaning of subsection 842‑240(3) of the Income Tax (Transitional Provisions) Act 1997).
 (4) For the purposes of applying paragraph 115‑225(1)(a) of the Income Tax Assessment Act 1997 to the beneficiary in respect of the income year:
 (a) disregard a capital gain of the trust to the extent the capital gain is a pre‑2012 IMR capital gain (or is referable to a pre‑2012 IMR capital gain of the fund); and
 (b) disregard a pre‑2012 IMR capital loss of the trust for the purposes of determining the amount of the capital gain remaining after applying steps 1 to 4 of the method statement in subsection 102‑5(1) of that Act; and
  (c) disregard a net capital loss of the trust to the extent that it is attributable to a pre‑2012 IMR capital loss for the purposes of determining the amount of the capital gain remaining after applying steps 1 to 4 of the method statement in subsection 102‑5(1).

Fraud
 (5)  Subsections (3) and (4) do not apply if the Commissioner has reason to believe that there has been fraud by the trust in relation to any income year.

Audit or compliance review
 (6) Subsections (3) and (4) do not apply if before 18 December 2010 the Commissioner notified the trust that an audit or compliance review would be undertaken in relation to any income year.

842‑220  Treatment of foreign resident partner that is not a trust or partnership

Objects
 (1) The objects of this section are to ensure that:
 (a) a foreign resident partner of an IMR foreign fund in relation to the 2010‑11 income year, or an earlier income year, is not subject to any Australian income tax in respect of pre‑2012 IMR income or a pre‑2012 IMR capital gain (or in respect of an amount that is referable to pre‑2012 IMR income or a pre‑2012 IMR capital gain) for the income year; and
 (b) the foreign resident partner 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 (or referable to