Document ID: chunk:federal_register_of_legislation:C2024C00267:section:4:p21
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 4 (pt 21/64)
Character Range: 755140–757794

section is to ensure that the following provisions interact appropriately with the tax concessions mentioned in subsection 842‑210(1), paragraphs 842‑215(1)(a) and (b) and paragraphs 842‑220(1)(a) and (b) in respect of the 2010‑11 income year or an earlier income year:
 (a) subsection 115‑220(2) of the Income Tax Assessment Act 1997;
 (b) section 115‑225 of the Income Tax Assessment Act 1997;
 (c) section 98 of the Income Tax Assessment Act 1936;
 (d) section 99E of the Income Tax Assessment Act 1936.
Note: Division 6 of Part III of the Income Tax Assessment Act 1936, Division 115 of the Income Tax Assessment Act 1997, and all other provisions of those Acts apply to the trustee of an IMR foreign fund, subject to the modifications in this section.

Application
 (2) This section applies to the 2010‑11 income year or an earlier income year of a trustee of a trust that is an IMR foreign fund in relation to that income year.

Applying subsection 115‑220(2) of the Income Tax Assessment Act 1997
 (3) For the purposes of applying subsection 115‑220(2) of the Income Tax Assessment Act 1997 to the beneficiary:
 (a) disregard a capital gain of the IMR foreign fund to the extent that the capital gain is a pre‑2012 IMR capital gain; and
 (b) disregard a pre‑2012 IMR capital loss of the IMR foreign fund for the purposes of determining the amount of the capital gain remaining after applying steps 1 to 4 of the method statement in subsection 102‑5(1); and
 (c) disregard a net capital loss of the IMR foreign fund to the extent that it is attributable to a pre‑2012 IMR capital loss for the purposes of determining how much of a capital gain that is not a pre‑2012 IMR capital gain remains after applying steps 1 to 4 of the method statement in subsection 102‑5(1).
Note: The effect of this subsection is that the increase to the assessable amount which occurs as a result of section 115‑220 of the Income Tax Assessment Act 1997 is calculated with reference to the capital gains of the IMR foreign fund that are not IMR capital gains or amounts referable to IMR capital gains (rather than by calculating the increase with reference to all capital gains of the fund).

Modifications to section 115‑225 of the Income Tax Assessment Act 1997
 (4) For the purposes of applying section 115‑225 of the Income Tax Assessment Act 1997 in respect of section 115‑220, make the following assumptions:
 (a) replace the references in section 115‑225 to the net income of the trust estate with references to the pre‑2012 non‑IMR net income (within the meaning of subsection 842‑240(1) of the Income Tax (Transitional Provisions) Act 1997) of the trust estate;