Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p7
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 7/13)
Character Range: 20044–22591

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 Income Tax Assessment Act 1997) as the case may be; and
 (b) replace the reference in that section to a part of the net income of another trust estate with a reference to a part of the non‑IMR net income (within the meaning of subsection 842‑260(1) of the Income Tax Assessment Act 1997) of another trust estate.
Note: The effect of this subsection is that the trustee of a trust that receives a distribution of non‑IMR net income from another trust is not required to apply section 98, 99 or 99A of the Income Tax Assessment Act 1936 to those amounts.

Certain losses disregarded
 (6) The trust cannot *utilise a *tax loss or *net capital loss in relation to an income year, or any future income year, to the extent the loss is attributable to *IMR income, an *IMR capital gain, an *IMR deduction or an *IMR capital loss.

842‑230  IMR foreign fund
  An entity is an IMR foreign fund in relation to an income year if:
 (a) the entity:
 (i) is not an Australian resident at any time during the income year; and
 (ii) is not a resident trust estate for the purposes of subsection 95(2) of the Income Tax Assessment Act 1936 at any time during the income year; and
 (b) the entity does not carry on a trading business (within the meaning of section 102M of the Income Tax Assessment Act 1936) at any time during the income year; and
 (c) subject to section 842‑235, the entity:
 (i) satisfies the widely held test at all times during the income year (see subsection 842‑240(1)); and
 (ii) does not breach the concentration test in subsection 842‑240(4) at any time during the income year.

842‑235  Wind‑down phases
  If:
 (a) the entity ceases to exist during the income year; and
 (b) the entity was an *IMR foreign fund in relation to the preceding income year;
treat the requirements in paragraph 842‑230(c) as being satisfied.

842‑240  Widely held test and concentration test

Widely held test
 (1) The entity satisfies the widely held test for the purposes of subparagraph 842‑230(c)(i) if:
 (a) units or shares in the entity are listed for quotation in the official list of an *approved stock exchange; or
 (b) the entity has at least 25 *members (ignoring objects of a trust); or
 (c) one or more of the entities covered by subsection (3) have a *total participation interest in the entity of more than 25%; or
 (d) all the