Document ID: chunk:federal_register_of_legislation:C2019C00124:clause:1_1:p25
Version: federal_register_of_legislation:C2019C00124
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 25/27)
Character Range: 67502–70190

an *AMIT, treat a distribution to the entity in accordance with the instrument as interest.

276‑515  Distribution on debt‑like trust instrument could be deductible in working out trust components
 (1) If an entity is the holder of a *debt‑like trust instrument in relation to an *AMIT, for the purposes of sections 276‑265 and 276‑270, treat a distribution to the entity in accordance with the instrument as a *return that the AMIT pays or provides on a *debt interest.
 (2) For the purposes of subsection (1), disregard the distribution to the extent (if any) that it is referable to any of the following:
 (a) *exempt income of the *AMIT;
 (b) *non‑assessable non‑exempt income of the AMIT.

Subdivision 276‑K—Ceasing to be an AMIT

Guide to Subdivision 276‑K

276‑800  What this Subdivision is about
      If a trust ceases to be an AMIT, and discovers an under or over from an income year when it was an AMIT, the under or over will have taxation consequences for the trust in the discovery year.

Table of sections

Operative provisions
276‑805 Application of Subdivision to former AMIT
276‑810 Continue to work out trust components, unders, overs etc.
276‑815 Effect of increase
276‑820 Effect of decrease

Operative provisions

276‑805  Application of Subdivision to former AMIT
  This Subdivision applies if:
 (a) a trust was an *AMIT for an income year; and
 (b) the trust is not an AMIT for a later income year (the discovery year).

276‑810  Continue to work out trust components, unders, overs etc.
 (1) For the purposes of this section, assume that the trust is an *AMIT for the discovery year.
 (2) If the trust has an *under or *over of a character in the discovery year for an earlier income year when the trust was an *AMIT, work out the extent to which the under or over:
 (a) increases the amount of the AMIT's *trust component of that character for the discovery year; or
 (b) decreases the amount of the AMIT's trust component of that character for the discovery year.

276‑815  Effect of increase
 (1) This section applies if there is an increase as mentioned in paragraph 276‑810(2)(a).
 (2) If the character mentioned in subsection 276‑810(2) relates to assessable income, treat the amount of the increase as assessable income of the trust for the discovery year.
 (3) Subsection (4) applies if the character mentioned in subsection 276‑810(2) is the character of:
 (a) a *discount capital gain from a *CGT asset that is *taxable Australian property; or
 (b) a discount capital gain from a CGT asset that is not taxable Australian property.
 (4) For the purposes of subsection (2), treat the amount of the increase as being double what it would be apart from this