Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p33
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 33/63)
Character Range: 421054–423810

an *arrangement that is entered into by 2 or more entities (the arrangement entities) if:
 (a) at least one of the arrangement entities is an *asset entity; and
 (b) at least one of the arrangement entities is an *operating entity; and
 (c) the following conditions are satisfied:
 (i) one or more other entities (the external entities) each hold a *total participation interest in each arrangement entity;
 (ii) the sum of the total participation interests held by the external entities in each arrangement entity is 80% or more.
 (5) For the purposes of subparagraph (4)(c)(ii), in working out the sum of the *total participation interests held by the external entities in each arrangement entity, take into account:
 (a) a particular *direct participation interest; or
 (b) a particular *indirect participation interest;
held in the arrangement entity only once if it would otherwise be counted more than once.
 (6) Subsection (7) applies if:
 (a) an external entity holds *total participation interests in 2 or more arrangement entities; and
 (b) either:
 (i) the amount (the lowest participation interest amount) of one of those participation interests falls short of the amount of each of the other participation interests; or
 (ii) the amount (the lowest participation interest amount) of 2 or more of those participation interests is the same but falls short of the amount of each of the other participation interests.
 (7) For the purposes of paragraph (4)(c), treat the amount of the *total participation interest held by the external entity in each of the arrangement entities as being equal to the lowest participation interest amount.
 (8) Each of the entities that entered into the *cross staple arrangement is a stapled entity in relation to the cross staple arrangement.

12‑437  Meaning of MIT cross staple arrangement income
 (1) This section applies if:
 (a) an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust's *net income, or in the case of an *AMIT, the trust's total assessable income, for the income year); and
 (b) the amount mentioned in paragraph (a) is, or is attributable to, an amount derived, received or made from another entity (the second entity); and
 (c) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12‑405(1)(a), (b), (c), (d) or (e).
 (2) The amount is MIT cross staple arrangement income of the *managed investment trust if:
 (a) either:
 (i) the *managed investment trust is an *asset entity in relation to the income year and is a *stapled entity in relation to a *cross staple arrangement; or
 (ii) the second entity is an asset entity in relation to