Document ID: chunk:federal_register_of_legislation:C2019C00215:clause:7_1:p4
Version: federal_register_of_legislation:C2019C00215
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 4/10)
Character Range: 89459–92154

entity's liability to pay, in relation to that income:
 (a) *withholding tax; or
 (b) an amount that must be withheld under Division 12 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld);
assume that any *independent Australian fund manager for the IMR entity is not a *permanent establishment of the IMR entity.
 (7) For the purposes of subparagraphs (2)(a)(i) and (3)(c)(i), an entity is taken to be a resident of a country that has entered into an *international tax agreement with Australia if the entity is such a resident within the meaning of that agreement.

842‑220  Meaning of IMR entity
  An entity is an IMR entity for an income year if the entity:
 (a) is not an Australian resident at all times during the income year; and
 (b) is not a *resident trust for CGT purposes for the income year.

842‑225  Meaning of IMR financial arrangement
 (1) A *financial arrangement is an IMR financial arrangement unless it is or relates to a *CGT asset that is:
 (a) *taxable Australian real property (see section 855‑20); or
 (b) an *indirect Australian real property interest (see section 855‑25).
 (2) Without limiting subsection (1), a sub‑underwriting arrangement that is not a *financial arrangement is an IMR financial arrangement if it was entered into by an *IMR entity for the purpose of providing for the entity to invest or trade in a financial arrangement that is an IMR financial arrangement under subsection (1).

IMR widely held entities

842‑230  Meaning of IMR widely held entity
 (1) An IMR widely held entity is any of the following:
 (a) a *foreign life insurance company;
 (b) an entity that is covered by paragraph 12‑402(3)(a), (b), (c), (d), (f), (g) or (h) in Schedule 1 to the Taxation Administration Act 1953;
 (c) an entity of a kind specified in regulations made for the purposes of this paragraph.
 (2) Without limiting subsection (1) of this section, an entity is an IMR widely held entity if:
 (a) either:
 (i) no other entity has a *total participation interest in the entity of 20% or more (see section 842‑235); or
 (ii) there are not 5 or fewer other entities the sum of whose total participation interests in the entity is 50% or more (see section 842‑235); or
 (b) the entity has never satisfied the requirements of paragraph (a), but investment in the entity is being actively marketed with the intention that the entity satisfies the requirements of that paragraph; or
 (c) the reason for failing to satisfy the requirements of paragraph (a) relates to the entity's activities and investments being wound down.

842‑235  Rules for determining total participation interests for the purposes of the widely held test