Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p10
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 10/13)
Character Range: 27273–29844

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 financial arrangement is a CGT asset covered by item 4 of the table in section 855‑15 because it is an option or right to *acquire a CGT asset covered by item 3 of that table.

IMR deduction
 (2) The IMR deduction for an income year of an *IMR foreign fund in relation to the income year is the sum of the fund's deductions for the income year to the extent to which they are attributable to gaining *IMR income, an *IMR capital gain, *pre‑2012 IMR income or a *pre‑2012 IMR capital gain.
 (3) Disregard the following provisions for the purposes of calculating an *IMR foreign fund's *IMR income or *IMR deduction:
 (a) subsection 842‑210(3) (which is about certain amounts of an IMR foreign fund being disregarded);
 (b) paragraph 842‑260(1)(a) (which is about non‑IMR net income);
 (c) section 842‑265 (which is about non‑IMR partnership net income and non‑IMR partnership loss).

842‑255  IMR capital gain and IMR capital loss

IMR capital gain
 (1) The IMR capital gain for an income year of an *IMR foreign fund in relation to the income year is the sum of the fund's *capital gains made in the income year to the extent that:
 (a) 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
 (b) the capital gains are made in respect of *CGT assets covered by subsection (3) which are also *financial arrangements covered by section 842‑245.

IMR capital loss
 (2) The IMR capital loss for an income year of an *IMR foreign fund for an income year is the sum of the fund's *capital losses made in relation to the income year to the extent that:
 (a) 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
 (b) the capital losses are made in respect of *CGT assets covered by subsection (3) which are also *financial arrangements covered by section 842‑245.
 (3) A *CGT asset of an *IMR foreign fund is covered by this subsection if:
 (a) it is covered by item 3 of the table in section 855‑15 in relation to the fund; or
 (b) it is covered by item 4 of the table in section 855‑15 in relation