Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if there is a decrease as mentioned in paragraph 276 - 810(2)(b).
(2) If the character mentioned in subsection 276 - 810(2) relates to assessable income:
(a) in the case of a character of:
(i) a * discount capital gain from a * CGT asset that is * taxable Australian property; or
(ii) a discount capital gain from a CGT asset that is not taxable Australian property;
treat half the amount of the decrease as a * capital loss of the trust for the discovery year; or
(b) in the case of a character of:
(i) a * capital gain (other than a discount capital gain) from a CGT asset that is taxable Australian property; or
(ii) a capital gain (other than a discount capital gain) from a CGT asset that is not taxable Australian property;
treat the amount of the decrease as a capital loss of the trust for the discovery year; or
(c) in any other case--treat the amount of the decrease as a deduction of the trust for the discovery year.
(3) If that character relates to * exempt income, treat the amount of the decrease as reducing the exempt income of the trust for the discovery year.
(4) If that character relates to * non - assessable non - exempt income, treat the amount of the decrease as reducing the non - assessable non - exempt income of the trust for the discovery year.
(5) If that character relates to a * tax offset, treat the amount of the decrease as reducing the tax offset or offsets (the existing offset or offsets ) of the trust for the discovery year of a kind corresponding to that character.
(6) If that character relates to a * tax offset and exceeds the total of the existing offset or offsets (before the reduction under subsection (5)):
(a) unless paragraph (b) applies--the trustee is liable to pay tax at the rate declared by the Parliament on the excess; or
Note: The tax is imposed by the Income Tax (Attribution Managed Investment Trusts--Offsets) Act 2016 and the rate of the tax is set out in that Act.
(b) if that character is the character of * foreign income tax paid that counts towards a tax offset under Division 770--subsection (7) applies.
(7) Increase the trust's assessable income for the discovery year by the sum of:
(a) the excess mentioned in subsection (6); and
(b) the product of:
(i) that excess; and
(ii) the * corporate tax gross - up rate.
Treat the amount of that increase as assessable income from a source other than an * Australian source.
Table of sections
280 - 1 Effect of this Division
280 - 5 Overview
Contributions phase
280 - 10 Contributions phase--deductibility
280 - 15 Contributions phase--limits on superannuation tax concessions
Investment phase
280 - 20 Investment phase
Benefits phase
280 - 25 Benefits phase--different types of superannuation benefit
280 - 30 Benefits phase--taxation varies with age of recipient and type of benefit
280 - 35 Benefits phase--roll - overs
The regulatory scheme outside this Act
280 - 40 Other relevant legislative schemes