Document ID: chunk:federal_register_of_legislation:C2024C00267:section:4:p19
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 4 (pt 19/64)
Character Range: 750422–752950

the amount of the capital gain remaining after applying steps 1 to 4 of the method statement in subsection 102‑5(1) of that Act; and
 (c) disregard a net capital loss of the trust to the extent that it is attributable to a pre‑2012 IMR capital loss 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).

Fraud
 (5) Subsections (3) and (4) do not apply if the Commissioner has reason to believe that there has been fraud by the trust in relation to any income year.

Audit or compliance review
 (6) Subsections (3) and (4) do not apply if before 18 December 2010 the Commissioner notified the trust that an audit or compliance review would be undertaken in relation to any income year.

842‑220  Treatment of foreign resident partner that is not a trust or partnership

Objects
 (1) The objects of this section are to ensure that:
 (a) a foreign resident partner of an IMR foreign fund in relation to the 2010‑11 income year, or an earlier income year, is not subject to any Australian income tax in respect of pre‑2012 IMR income or a pre‑2012 IMR capital gain (or in respect of an amount that is referable to pre‑2012 IMR income or a pre‑2012 IMR capital gain) for the income year; and
 (b) the foreign resident partner of the fund is not able to claim a deduction or utilise a tax loss in relation to the income year to the extent that the deduction or tax loss was incurred or made in respect of an amount that is:
 (i) pre‑2012 IMR income of the fund (or referable to pre‑2012 IMR income of the fund); or
 (ii) a pre‑2012 IMR capital gain (or referable to a pre‑2012 IMR capital gain); and
 (c) this section does not provide any tax concession to an Australian resident that invests in the fund (whether directly or indirectly through one or more interposed entities).

Application
 (2) This section applies to a partner in a partnership in relation to the 2010‑11 income year, or an earlier income year, if:
 (a) the partner is not an Australian resident at any time during the income year; and
 (b) the partner is not a trust or a partnership at any time during the income year (other than a foreign superannuation fund); and
 (c) neither the partnership nor the partner has 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