Document ID: chunk:federal_register_of_legislation:C2019C00215:clause:7_1:p7
Version: federal_register_of_legislation:C2019C00215
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 7/10)
Character Range: 97040–99793

regard to the following matters:
 (i) the matters in paragraphs (b) and (c);
 (ii) the nature of the circumstance;
 (iii) the actions (if any) taken by the entity to address or remove the circumstance, and the speed with which such actions are taken;
 (iv) any other relevant matter.

Independent Australian fund managers

842‑245  Meaning of independent Australian fund manager
 (1) An entity (the managing entity) is an independent Australian fund manager for an *IMR entity for an income year if:
 (a) the managing entity is an Australian resident; and
 (b) the managing entity carries out investment management activities for the IMR entity in the ordinary course of *business; and
 (c) the managing entity's remuneration for carrying out those activities is what the remuneration would be between parties dealing at *arm's length; and
 (d) one or more of the following applies:
 (i) the IMR entity is an *IMR widely held entity;
 (ii) 70% or less of the managing entity's income, for the income year, is income received from the IMR entity or entities *connected with the IMR entity;
 (iii) if the managing entity has been carrying out investment management activities for 18 months or less—it takes all reasonable steps to ensure that the proportion of its income received from the IMR entity or entities connected with the IMR entity, for the income year in which that 18 month period ends, will be reduced to 70% or less.
 (2) In applying paragraph (1)(c), have regard to the documents covered by section 815‑135.

842‑250  Reductions in IMR concessions if independent Australian fund manager entitled to substantial share of IMR entity's income
 (1) The application of section 842‑215 to an *IMR entity for an income year is modified, as provided by subsection (4) of this section, if:
 (a) an entity is an *independent Australian fund manager for the IMR entity; and
 (b) that entity, or another entity *connected with the entity, has a direct or indirect right to receive part of the profits of the IMR entity for the year; and
 (c) the sum of the amounts that the entity, and any other entity connected with the entity, receive for the year in connection with the entity being that independent Australian fund manager exceeds 20% of the amount (the unadjusted concessional amount) worked out under subsection (3); and
 (d) the requirements of subsection 842‑215(3) in relation to the year are not met.
 (2) However, this section does not apply if:
 (a) the circumstances giving rise to the requirements of paragraph (1)(c) being met arose outside the control of:
 (i) the *IMR entity; or
 (ii) the *independent Australian fund manager or any entity *connected with the independent Australian fund manager; and
 (b) the independent Australian