Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:2_1:p1
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 1/11)
Character Range: 38987–41719

1  At the end of Part 4‑5:
Add:

Division 842—Exempt Australian source income and gains of foreign residents

Subdivision 842‑I—Investment manager regime

Table of sections

Operative provisions
842‑210 Treatment of IMR foreign fund that is a corporate tax entity
842‑215 Treatment of foreign resident beneficiary that is not a trust or partnership
842‑220 Treatment of foreign resident partner that is not a trust or partnership
842‑225 Treatment of trustee of an IMR foreign fund
842‑230 Pre‑2012 IMR deduction
842‑235 Pre‑2012 IMR capital loss
842‑240 Pre‑2012 non‑IMR net income, pre‑2012 non‑IMR Division 6E net income and pre‑2012 non‑IMR net capital gain
842‑245 Pre‑2012 non‑IMR partnership net income and pre‑2012 non‑IMR partnership loss

842‑210  Treatment of IMR foreign fund that is a corporate tax entity

Objects
 (1) The object of this section is to disregard, for the purpose of calculating the assessable income of a corporate tax entity that is an IMR foreign fund, certain gains and losses that arise in the 2010‑11 income year, or an earlier income year, in respect of certain kinds of financial arrangements.

Application
 (2) This section applies to a corporate tax entity that is an IMR foreign fund in relation to an income year if:
 (a) the income year is the 2010‑11 income year or an earlier income year; and
 (b) the corporate tax entity has pre‑2012 IMR income, a pre‑2012 IMR deduction, a pre‑2012 IMR capital gain or a pre‑2012 IMR capital loss in relation to the income year; and
 (c) the corporate tax entity has not lodged an income tax return in relation to the 2010‑11 income year, or any earlier income year, before the day that item 1 of Schedule 1 to the Tax Laws Amendment (Investment Manager Regime) Act 2012 commences; and
 (d) the Commissioner did not, before 18 December 2010, make an assessment of the taxable income of the corporate tax entity for any income year.
Note 1: For the purposes of this Act, pre‑2012 IMR income is defined in subsections 842‑270(1) and (2) of the Income Tax Assessment Act 1997 and pre‑2012 IMR capital gain is defined in subsection 842‑270(3) of that Act.
Note 2: Pre‑2012 IMR deduction is defined in subsections 842‑230(1) and (2) of this Act and pre‑2012 IMR capital loss is defined in section 842‑235 of this Act.

Certain amounts disregarded
 (3) In working out the corporate tax entity's taxable income, tax loss or net capital loss for the income year:
 (a) treat the corporate tax entity's pre‑2012 IMR income for the income year as non‑assessable non‑exempt income; and
 (b) disregard the corporate tax entity's pre‑2012 IMR deduction for the income year; and
 (c) disregard the corporate tax entity's pre‑2012 IMR capital gain for the income year;