Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p6
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 6/13)
Character Range: 17674–20260

the modifications in this section.

Applying subsection 115‑220(2)
 (2) For the purposes of applying subsection 115‑220(2) to the beneficiary:
 (a) disregard a *capital gain of the *IMR foreign fund to the extent the capital gain is an *IMR capital gain; and
 (b) disregard an *IMR capital loss of the IMR foreign fund 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); and
 (c) disregard a *net capital loss of the IMR foreign fund to the extent that it is attributable to an IMR capital loss for the purposes of determining how much of a capital gain that is not an IMR capital gain remains after applying steps 1 to 4 of the method statement in subsection 102‑5(1).
Note: The effect of this subsection is that the increase to the assessable amount which occurs as a result of section 115‑220 is calculated with reference to the capital gains of the IMR foreign fund that are not IMR capital gains or amounts referable to IMR capital gains (rather than by calculating the increase with reference to all capital gains of the fund).

Modifications to section 115‑225
 (3) For the purposes of applying section 115‑225 in respect of section 115‑220, make the following assumptions:
 (a) replace the references in section 115‑225 to the net income of the trust estate with references to the *non‑IMR net income of the trust estate;
 (b) replace the reference in section 115‑225 to net capital gain (if any) with a reference to *non‑IMR net capital gain (if any).

Modifications to section 98 of the Income Tax Assessment Act 1936
 (4) For the purposes of applying section 98 of the Income Tax Assessment Act 1936, replace references in that section to net income with references to non‑IMR net income (within the meaning of subsection 842‑260(1) of the Income Tax Assessment Act 1997).
Note: The effect of this subsection is that where section 98 of the Income Tax Assessment Act 1936 applies to the trustee of a trust that is an IMR foreign fund, the trustee is only assessed and made liable to pay tax in respect of non‑IMR net income of the fund (rather than in respect of all net income of the fund to which section 98 would otherwise apply).

Modifications to section 99E of the Income Tax Assessment Act 1936
 (5) For the purposes of applying section 99E of the Income Tax Assessment Act 1936:
 (a) replace the reference in that section to so much of the net income with a reference to so much of the net income or non‑IMR net income (within the meaning of subsection 842‑260(1) of the