Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 5/80)
Character Range: 4353703–4356388

trading trust etc.).
 (2) Include in your assessable income for the income year:
 (a) the amount of the distribution (except to the extent that it represents a return of capital that you or your associate contributed in order for you to *acquire the asset); or
 (b) the amount of your gain or profit (if any) on the *CGT event.
 (3) Subsection (2) does not apply to the extent that the amount is included in your assessable income as:
 (a) *ordinary income under section 6‑5; or
 (b) *statutory income under a section of this Act, other than a provision in Part 3‑1 or 3‑3.
 (4) An amount to which subsection (2) applies is taken, for the purposes of the *income tax laws, to have a source in Australia. For the purposes of this subsection, disregard subsection (3).
 (5) You are entitled to a deduction for the income year for the amount of your loss (if any) on the *CGT event.
 (6) Subsection (5) does not apply to the extent that you can deduct the amount under another provision of this Act.
 (7) Subdivision 115‑C does not apply to the amount of a distribution mentioned in subparagraph (1)(f)(i) if:
 (a) that amount is included in your assessable income under subsection (2); or
 (b) an amount referable to that amount is included in your assessable income under Division 6 of Part III of the Income Tax Assessment Act 1936.

Subdivision 275‑L—Modification for non‑arm's length income

Guide to Subdivision 275‑L

275‑600  What this Subdivision is about
      The trustee of a managed investment trust in relation to an income year is taxed on amounts related to the managed investment trust's non‑arm's length income for the income year.

Table of sections

Operative provisions
275‑605 Trustee taxed on amount of non‑arm's length income of managed investment trust
275‑610 Non‑arm's length income
275‑615 Commissioner's determination in relation to amount of non‑arm's length income

Operative provisions

275‑605  Trustee taxed on amount of non‑arm's length income of managed investment trust
 (1) Subsections (2), (3) and (4) apply if the Commissioner has made a determination under section 275‑615 that specifies an amount of *non‑arm's length income for a specified *managed investment trust in relation to a specified income year.

Excess amount to be taxed
 (2) The trustee of the *managed investment trust is liable to pay income tax at the rate declared by the Parliament on the amount mentioned in subsection (5).
Note: The rate is set out in subsection 12(10) of the Income Tax Rates Act 1986.

Excess amount to be adjusted
 (3) If the trust is an *AMIT for the income year:
 (a) if paragraph (b) does not apply—treat the trust as having an *over in the income year