Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/80)
Character Range: 4358573–4361197

of return for the interest; and
 (b) the *base interest rate for the day on which the return is paid or provided, plus 3 percentage points.
 (3) Subsection (4) applies if:
 (a) an amount would be *non‑arm's length income of the *managed investment trust (disregarding that subsection); and
 (b) the amount is a distribution from a trust, or a share of the *net income of a trust, if the trust is a party to the scheme mentioned in paragraph (1)(a).
 (4) The amount is *non‑arm's length income of the *managed investment trust only to the extent that the distribution or share of *net income is attributable to non‑arm's length income of the trust mentioned in paragraph (3)(b) (on that assumption that the trust were a managed investment trust) because of another operation of this section.
 (5) Subsection (6) applies if:
 (a) an amount (the first amount) of *ordinary income or *statutory income of the *managed investment trust that would be *non‑arm's length income of the managed investment trust (disregarding that subsection) is:
 (i) a distribution from a trust that is a party to the scheme mentioned in paragraph (1)(a); or
 (ii) a share of the *net income of a trust that is a party to that scheme; and
 (b) another amount (the second amount) of ordinary income or statutory income of the managed investment trust is:
 (i) a distribution from another trust (whether or not the other trust is a party to that scheme); or
 (ii) a share of the net income of another trust (whether or not the other trust is a party to that scheme); and
 (c) it is reasonable to conclude that the second amount would have been higher but for the first amount.
 (6) The first amount is not *non‑arm's length income of the *managed investment trust to the extent that the second amount would have been higher as mentioned in paragraph (5)(c).

275‑615  Commissioner's determination in relation to amount of non‑arm's length income
 (1) The Commissioner may make a determination in writing that specifies an amount of *non‑arm's length income for a specified *managed investment trust in relation to a specified income year if the Commissioner is satisfied that:
 (a) the amount of non‑arm's length income for the managed investment trust in relation to the income year is reflected in:
 (i) if the trust is an *AMIT for the income year—one or more of its *trust components for the income year; or
 (ii) otherwise—its *net income for the income year; and
 (b) the managed investment trust is a party to the *scheme mentioned in paragraph 275‑610(1)(a) at a time in the income year in which the amount is derived; and
 (c) at least one of