Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p9
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 9/13)
Character Range: 24798–27512

interest or an *equity interest in the entity; or
 (ii) the result of a *financing arrangement for the entity that is neither a debt interest nor an equity interest; or
 (iii) a *derivative financial arrangement that relates to a financial arrangement to which subparagraph (i) or (ii) applies.
 (3) A *financial arrangement is not covered by this section if:
 (a) the financial arrangement is a *derivative financial arrangement that relates to a *CGT asset; and
 (b) the CGT asset is:
 (i) *taxable Australian real property (see section 855‑20); or
 (ii) an *indirect Australian real property interest (see section 855‑25).
 (4) A *financial arrangement is not covered by this section if its terms allow the *IMR foreign fund to:
 (a) vote at a meeting of the Board of Directors (or other governing body) of the issuer of the financial arrangement; or
 (b) participate in making financial, operating or policy decisions in respect of the operation of the issuer of the financial arrangement; or
 (c) deal with the assets of the issuer of the financial arrangement.
 (5) Subsection (4) does not apply if that subsection applies solely because the issuer of the *financial arrangement breached a term of the financial arrangement.

842‑250  IMR income and IMR deduction

IMR income
 (1) The IMR income for an income year of an *IMR foreign fund in relation to the income year is the sum of the fund's assessable income for the income year to the extent that:
 (a) the assessable income is attributable to a return or gain from a *financial arrangement covered by section 842‑245; and
 (b) the fund has a *permanent establishment in Australia solely as a result of engaging an entity that is a resident of Australia to habitually exercise a general authority to negotiate and conclude contracts on its behalf; and
 (c) amounts are included in the assessable income of the fund only because:
 (i) in respect of a fund that is resident in a country that has entered into an agreement (within the meaning of the International Tax Agreements Act 1953) with Australia containing a *business profits article—amounts included in the assessable income of the fund are treated as having a source in Australia because they are attributable to a permanent establishment of the fund in Australia; or
 (ii) in respect of a fund that is resident in a country that has not entered into an agreement (within the meaning of the International Tax Agreements Act 1953) with Australia containing a business profits article—the Commissioner makes a determination under section 136AE of the Income Tax Assessment Act 1936; or
 (iii) the financial arrangement is a *CGT asset covered by item 3 of the table in section 855‑15; or
 (iv) the