Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Division 275 (heading)
Repeal the heading, substitute:
Division 275 -- Australian managed investment trusts: general
2 Section 275 - 1
After "are or were certain Australian managed investment trusts", insert "(or certain other trusts)" .
3 Subdivision 275 - A
Repeal the Subdivision, substitute:
Subdivision 275 - A -- Meaning of managed investment trust
275 - 5 What this Subdivision is about
This Subdivision sets out the requirements for a trust to be a managed investment trust in relation to an income year.
Table of sections
Operative provisions
275 - 10 Meaning of managed investment trust
275 - 15 Trusts with wholesale membership
275 - 20 Widely - held requirements--ordinary case
275 - 25 Widely - held requirements for registered MIT--special case for entities covered by subsection 275 - 20(4)
275 - 30 Closely - held restrictions
275 - 35 Licensing requirements for unregistered MIS
275 - 40 MIT participation interest
275 - 45 Meaning of managed investment trust --every member of trust is a managed investment trust etc.
275 - 50 Extended definition of managed investment trust --no fund payment made in relation to the income year
275 - 55 Extended definition of managed investment trust --temporary circumstances outside the control of the trustee
275 - 10 Meaning of managed investment trust
(1) A trust is a managed investment trust in relation to an income year if any of the following requirements are met:
(a) the trust is covered under subsection ( 3) of this section in relation to the income year (ordinary case);
(b) the trust is covered under section 275 - 45 in relation to the income year (only members of trust are managed investment trusts etc . ) .
(2) A trust is also a managed investment trust in relation to an income year if any of the following requirements are met:
(a) the trust is covered under section 275 - 50 in relation to the income year (no fund payment made in relation to the income year);
(b) the trust is covered under section 275 - 55 in relation to the income year (temporary circumstances outside the control of the trustee) .
(3) A trust is covered under this subsection in relation to an income year if:
(a) at the time the trustee of the trust makes the first * fund payment in relation to the income year, or at an earlier time in the income year:
(i) the trustee of the trust was an Australian resident; or
(ii) the central management and control of the trust was in Australia; and
(b) the trust is not a trust covered by subsection ( 4) (trading trust etc . ) in relation to the income year; and
(c) at the time the payment is made, the trust is a managed investment scheme (within the meaning of section 9 of the Corporations Act 2001 ); and
(d) at the time the payment is made:
(i) the trust is covered by section 275 - 15 (trusts with wholesale membership); or
(ii) if the trust is not covered by section 275 - 15 --the trust is registered under section 601EB of the Corporations Act 2001 ; and
(e) the trust satisfies, in relation to the income year:
(i) if, at the time the payment is made, the trust is registered under section 601EB of the Corporations Act 2001 and is covered by section 275 - 15 --either or both of the widely - held requirements in subsections 275 - 20 (1) and 275 - 25 (1); or
(ii) if, at the time the payment is made, the trust is so registered and is not covered by section 275 - 15 --either or both of the widely - held requirements in subsections 275 - 20 (2) and 275 - 25 (1); or
(iii) if, at the time the payment is made, the trust is not so registered and is covered by section 275 - 15 --the widely - held requirements in subsection 275 - 20 (1); and
(f) the trust satisfies the closely - held restrictions in subsection 275 - 30 (1) in relation to the income year; and
(g) if the trust is covered by section 275 - 15 at the time the payment is made--it satisfies the licensing requirements in section 275 - 35 in relation to the income year .
Trading unit trust or other trust carrying on trading business etc . cannot be managed investment trust
(4) A trust is covered by this subsection in relation to an income year if:
(a) in the case of a unit trust--the trust is a trading trust for the purposes of Division 6C of Part III of the Income Tax Assessment Act 1936 in relation to the income year; or
(b) in any other case--the trust at any time in the income year:
(i) carried on a trading business (within the meaning of that Division); or
(ii) controlled, or was able to control, directly or indirectly, the affairs or operations of another person in respect of the carrying on by that other person of a trading business (within the meaning of that Division) .
Crown entities etc .
(5) For the purposes of paragraphs ( 3)(d) and (e), treat an entity as registered under section 601EB of the Corporations Act 2001 at the time the payment is made if at that time the trust is operated by:
(a) an entity that would, but for subsection 5A(4) of that Act (about the Crown not being bound by Chapter 6CA or 7 of that Act), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) whose licence would cover operating such a managed investment scheme; or
(b) an entity that:
(i) is a * wholly - owned subsidiary of an entity of a kind mentioned in paragraph ( a); and
(ii) would, but for any instrument issued by ASIC under that Act that has effect in relation to the entity and operation of the scheme mentioned in paragraph ( 3)(c), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) whose licence would cover operating such a managed investment scheme .
Start - up and wind - down phases
(6) Treat the requirements in paragraphs ( 3)(e) and (f) as being satisfied if:
(a) the trust is created during the period:
(i) starting 12 months before the start of the income year; and
(ii) ending at the end of the income year; or
(b) the trust ceases to exist during the income year, and was a * managed investment trust (disregarding paragraph ( a) of this section) in relation to the previous income year .
275 - 15 Trusts with wholesale membership
A trust is covered by this section at a time if, at that time:
(a) the trust is not required to be registered in accordance with section 601ED of the Corporations Act 2001 (whether or not it is actually so registered) because of subsection 601ED(2) of that Act (no product disclosure statement required) or because it is operated or managed by an entity covered by subsection 275 - 35 (2) (Crown entities); and
(b) the total number of entities that had become a * member of the trust because a financial product or a financial service was provided to, or acquired by, the entity as a retail client (within the meaning of sections 761G and 761GA of the Corporations Act 2001 ) is no more than 20; and
(c) the entities mentioned in paragraph ( b) have a total * MIT participation interest in the trust of no more than 10% .
275 - 20 Widely - held requirements--ordinary case
(1) The trust satisfies the requirements in this subsection in relation to the income year if, at the time the payment mentioned in paragraph 275 - 10 (3)(a) is made, the trust has at least 25 * members .
(2) The trust satisfies the requirements in this subsection in relation to the income year if, at the time the payment mentioned in paragraph 275 - 10 (3)(a) is made:
(a) units in the trust are listed for quotation in the official list of an * approved stock exchange in Australia; or
(b) the trust has at least 50 * members (ignoring objects of a trust) .
(3) For the purposes of subsection ( 1) and paragraph ( 2)(b), determine the number of * members of the trust as follows:
(a) first, by applying the rules in subsection ( 5), identify:
(i) the members of the trust that are not entities covered by subsection ( 4); and
(ii) the members of the trust that are entities covered by subsection ( 4);
(b) next, work out the number of members mentioned in subparagraph ( a)(i);
(c) next:
(i) work out the * MIT participation interest in the trust of each entity mentioned in subparagraph ( a)(ii); and
(ii) for each of those entities, multiply the total of its MIT participation interest in the trust by 50 and round the result upwards to the nearest whole number; and
(iii) work out the total of the results of subparagraph ( ii) for all of those entities;
(d) next, work out the total of the results of paragraphs ( b) and (c) .
(4) This subsection covers the following kinds of entity:
(a) a * life insurance company;
(b) a * foreign life insurance company that is regulated under a * foreign law;
(c) a * complying superannuation fund, a * complying approved deposit fund or a * foreign superannuation fund, being a fund that has at least 50 * members;
(d) a * pooled superannuation trust that has at least one member that is a complying superannuation fund that has at least 50 members;
(e) a * managed investment trust in relation to the income year;
(f) an entity:
(i) that is recognised under a foreign law as being used for collective investment by pooling the contributions of its members as consideration to acquire rights to benefits produced by the entity; and
(ii) that has at least 50 members; and
(iii) the contributing members of which do not have day - to - day control over the entity's operation;
(g) an entity, the principal purpose of which is to fund pensions (including disability and similar benefits) for the citizens or other contributors of a foreign country, if:
(i) the entity is a fund established by an * exempt foreign government agency; or
(ii) the entity is established under a foreign law for an exempt foreign government agency; or
(iii) the entity is a * wholly - owned subsidiary of an entity mentioned in subparagraph ( i) or (ii);
(h) an investment entity that satisfies all of these requirements:
(i) the entity is wholly - owned by one or more * foreign government agencies, or is a wholly - owned subsidiary of one or more foreign government agencies;
(ii) the entity is established using only the public money or public property of the foreign government concerned;
(iii) all economic benefits obtained by the entity have passed, or are expected to pass, to the foreign government concerned;
(i) an entity established and wholly - owned by an * Australian government agency, if the capital of the entity, and returns from the investment of that capital, are used for the primary purpose of meeting statutory government liabilities or obligations (such as superannuation liabilities and liabilities arising from compensation or workcover claims);
(j) a * limited partnership, if, throughout the income year:
(i) at least 95% of the * membership interests in the limited partnership are owned by entities mentioned in the precedin g paragraphs of this subsection, or by entities that are wholly - owned by entities so mentioned ; and
(ii) the remaining membership interests (if any) in the limited partnership are owned by a * general partner of the limited partnership that habitually exercises the management power of the limited partnership;
(k) an entity, all the membership interests in which are owned by any of the following:
(i) entities mentioned in the preceding paragraphs of this subsection;
(ii) entities that are wholly - owned by entities mentioned in the preceding paragraphs of this subsection ;
(iii) entities that are covered under this subsection because of a previous operation of this paragraph;
( l ) an entity of a kind similar to an entity mentioned in the preceding paragraphs of this subsection as specified in the regulations .
(5) The rules are as follows:
(a) if an entity that is not a trust holds interests in the trust indirectly, through a * chain of trusts:
(i) treat the entity as a member of the trust; and
(ii) do not treat a trust in the chain of trusts as a member of the trust;
(b) do not treat an object of the trust as a member of the trust;
(c) if the trust is mentioned in subparagraph 275 - 10 (3)(d)(i) (trusts with wholesale membership)--do not treat an individual as a member of the trust (other than an individual who became a member of the trust because a financial product or a financial service was provided to, or acquired by, the individual as a wholesale client (within the meaning of section 761G of the Corporations Act 2001 ));
(d) the rules in subsection ( 7) .
(6) For the purposes of paragraph ( 5)(a), treat an entity covered by subsection ( 4) as an entity that is not a trust .
(7) The rules are as follows:
(a) treat the following entities as together being one entity:
(i) an individual;
(ii) each of his or her * relatives;
(iii) each entity acting in the capacity of nominee of an individual mentioned in subparagraph ( i) or (ii);
(b) treat the following entities as together being one entity (the notional entity ):
(i) an entity that is not an individual;
(ii) each entity acting in the capacity of nominee of the entity mentioned in subparagraph ( i) .
(8) For the purposes of subsection ( 5), if the entity mentioned in subparagraph ( 7)(b)(i) is an entity covered by subsection ( 4), treat the notional entity as an entity covered by subsection ( 4) .
275 - 25 Widely - held requirements for registered MIT--special case for entities covered by subsection 275 - 20 (4)
(1) The trust satisfies the requirements in this subsection in relation to the income year if:
(a) one or more entities covered by subsection 275 - 20 (4) have a total * MIT participation interest in the trust of more than 25% at the time the payment mentioned in paragraph 275 - 10 (3)(a) is made; and
(b) at no time in the income year does an entity (other than an entity covered by subsection 275 - 20 (4)) have a MIT participation interest in the trust of more than 60% .
(2) For the purposes of paragraphs ( 1)(a) and (b):
(a) if:
(i) an entity covered by subsection 275 - 20 (4) has a * MIT participation interest (the first interest ) in the trust; and
(ii) another entity covered by subsection 275 - 20 (4) also has a MIT participation interest (the second interest ) in the trust;
disregard the second interest to the extent that it arises through the existence of the first interest; and
(b) if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a * chain of trusts--do not treat a trust in the chain of trusts as having a MIT participation interest in the trust .
(3) For the purposes of paragraph ( 2)(b), treat an entity covered by subsection 275 - 20 (4) as an entity that is not a trust .
(4) For the purposes of paragraphs ( 1)(a) and (b), apply the rules in subsection 275 - 20 (7) .
275 - 30 Closely - held restrictions
(1) The trust satisfies the requirements in this subsection in relation to the income year unless, at any time in the income year, any of the following situations exist:
(a) for a trust mentioned in subparagraph 275 - 10 (3)(d)(i) (trusts with wholesale membership)--10 or fewer persons have a total * MIT participation interest in the trust of 75% or more;
(b) if paragraph ( a) does not apply--20 or fewer persons have a total MIT participation interest in the trust of 75% or more;
(c) a foreign resident individual has a MIT participation interest in the trust of 10% or more .
(2) For the purposes of paragraphs ( 1)(a) and (b):
(a) if an entity covered by subsection 275 - 20 (4) has a * MIT participation interest in the trust--treat that entity as not having a MIT participation interest in the trust; and
(b) if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a * chain of trusts:
(i) if the entity is covered by subsection 275 - 20 (4)--do not treat it as having a MIT participation interest in the trust; and
(ii) do not treat a trust in the chain of trusts as having a MIT participation interest in the trust .
(3) For the purposes of paragraph ( 2)(b), treat an entity covered by subsection 275 - 20 (4) as an entity that is not a trust .
(4) For the purposes of paragraphs ( 1)(a) and (b), apply the rules in subsection 275 - 20 (7) .
275 - 35 Licensing requirements for unregistered MIS
(1) The trust satisfies the requirements in this section in relation to the income year if, at the time the payment mentioned in paragraph 275 - 10 (3)(a) is made (the time of the first fund payment for the income year):
(a) the trust is operated or managed by:
(i) a financial services licensee (within the meaning of section 761A of the Corporations Act 2001 ) holding an Australian financial services licence whose licence covers it providing financial services (within the meaning of section 766A of that Act) to wholesale clients (within the meaning of section 761G of that Act); or
(ii) an authorised representative (within the meaning of section 761A of that Act) of such a financial services licensee; or
(b) the trust is operated or managed by an entity covered by subsection ( 2); or
(c) the trust is operated or managed by an entity that:
(i) is a * wholly - owned subsidiary of an entity covered by subsection ( 2); and
(ii) is an entity covered by subsection ( 3) .
(2) An entity is covered by this subsection if it would, but for subsection 5A(4) of the Corporations Act 2001 (about the Crown not being bound by Chapter 6CA or 7 of that Act), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) .
(3) An entity is covered by this subsection if it would, but for any instrument issued by ASIC under the Corporations Act 2001 that has effect in relation to the entity and the operation of the scheme mentioned in paragraph 275 - 10 (3)(c), be required under that Act to be a financial services licensee (within the meaning of section 761A of that Act) .
275 - 40 MIT participation interest
(1) An entity has a MIT participation interest in a trust if the entity, directly or indirectly:
(a) holds, or has the right to * acquire, interests representing a percentage of the value of the interests in the trust; or
(b) has the control of, or the ability to control, a percentage of the rights attaching to * membership interests in the trust; or
(c) has the right to receive a percentage of any distribution of income that the trust may make .
(2) The MIT participation interest of the entity in the trust is the greatest of the percentages mentioned in paragraphs ( 1)(a), (b) and (c) .
(1) A trust is covered under this section in relation to an income year if:
(a) the condition in paragraph 275 - 10 (3)(a) is satisfied; and
(b) the condition in paragraph 275 - 10 (3)(b) is satisfied; and
(c) either:
(i) the only * members of the trust are entities that are covered by subsection 275 - 20 (4) (other than entities mentioned in paragraph 275 - 20 (4)(f)); or
(ii) the only members of the trust are entities that are * managed investment trusts in relation to the income year because of subsection 275 - 10 (2); and
(d) the trust satisfies the licensing requirements in section 275 - 35 in relation to the income year .
(2) A requirement in paragraph ( 1)(a) is satisfied if, and only if, it is satisfied:
(a) at the time the trustee of the trust makes the first * fund payment in relation to the income year; or
(b) if the trustee does not make such a payment in relation to the income year--at both the start and the end of the income year .
A trust is covered under this section in relation to an income year if:
(a) the trustee of the trust does not make a * fund payment in relation to the income year; and
(b) the trust would be a * managed investment trust in relation to the income year if the trustee of the trust had made the first fund payment in relation to the income year on the first day of the income year when it was in existence ; and
(c) the trust would be a managed investment trust in relation to the income year if the trustee of the trust had made the first fund payment in relation to the income year on the last day of the income year on which it was in existence .
A trust is covered under this section in relation to an income year if:
(a) apart from a particular circumstance, the trust would be a * managed investment trust in relation to the income year; and
(b) the circumstance is temporary; and
(c) the circumstance arose outside the control of the trustee of the trust; and
(d) it is fair and reasonable to treat the trust as a managed investment trust in relation to the income year, having regard to the following matters:
(i) the matters in paragraphs ( a) and (b);
(ii) the nature of the circumstance;
(iii) the actions (if any) taken by the trustee of the trust to address or remove the circumstance, and the speed with which such actions are taken;
(iv) the extent to which treating the trust as a managed investment trust in relation to the income year would increase or reduce the amount of tax otherwise payable by the trustee, the * members of the trust or any other entity;
(v) any other relevant matter .
4 After subsection 275 - 200(1)
Insert:
(1A) For the purposes of paragraph ( 1)(c), in determining whether the entity satisfies any of the requirements mentioned in that paragraph:
(a) disregard paragraph 275 - 10 (3)(b) (requirement of not being a trading trust etc . ); and
(b) disregard subsection 102T(16) of the Income Tax Assessment Act 1936 (exclusion of public trading trust etc . ) .
5 At the end of Division 275
Add :
Subdivision 27 5 - L -- Modification for non - arm's length income
275 - 600 What this Subdivision is about
The trustee of a managed investment trust in relation to an income year is taxed on amounts related to the managed investment trust 's non - arm's length income for the income year .
Table of sections
Operative provisions
275 - 605 Trustee taxed on amount of non - arm's length income of managed investment trust
275 - 610 Non - arm's length income
275 - 615 Commissioner's determination in relation to amount of non - arm's length income
275 - 605 Trustee taxed on amount of non - arm's length income of managed investment trust
(1) Subsections ( 2) , (3) and ( 4 ) apply if the Commissioner has made a determination under section 275 - 615 that specifies an amount of * non - arm's length income for a specified * managed investment trust in relation to a specified income year .
Excess amount to be t axed
(2) The trustee of the * managed investment trust is liable to pay income tax at the rate declared by the Parliament on the amount mentioned in subsection ( 5 ) .
Note: The rate is set out in subsection 12(10) of the Income Tax Rates Act 1986 .
Excess amount to be adjusted
(3) If the trust is an * AMIT for the income year:
(a) if paragraph ( b) does not apply--treat the trust as having an * over in the income year in which the determination is made, for the specified income year, of a character relating to * ordinary income , or * statutory income , from an * Australian source , equal to the amount mentioned in subsection ( 5 ); or
(b) if the trust already has such an over in the income year in which the determination is made, for the specified income year--increase the amount of that over by the amount mentioned in subsection ( 5 ) .
( 4 ) If the trust is not an * AMIT for the income year, reduce the trust's * net income for the income year in which the determination is made by the amount mentioned in subsection ( 5 ), to the extent that the net income is attributable to that amount .
Excess amount
( 5 ) The amount is the excess mentioned in paragraph 275 - 610 (1) (b) in respect of the * non - arm's length income, reduced by deductions (if any) that:
(a) are reflected in :
(i) if the trust is an * AMIT for the income year--the amounts of its * trust components for the income year (disregarding subsection ( 3)); or
(ii) otherwise--its * net income for the income year (disregarding subsection ( 4 )); and
(b) are attributable only to the amount of non - arm's length income .
275 - 610 Non - arm's length income
( 1 ) An amount of * ordinary income or * statutory income is non - arm's length income of a * managed investment trust if:
(a) it is derived from a * scheme the parties to which were not dealing with each other at * arm's length in relation to the scheme; and
(b) that amount exceeds the amount that the entity might have been expected to derive if those parties had been dealing with each other at arm's length in relation to the scheme; and
(c) the amount is none of the following:
(i) a distribution from a * corporate tax entity;
(ii) a distribution from a trust that is not a party to the scheme mentioned in paragraph ( a);
(iii) a * return covered by subsection ( 2 ) .
( 2 ) This subsection covers a * return that an entity pays or provides on a * debt interest, if the rate (expressed on an annual basis) of the return does not exceed the greater of:
(a) the * benchmark rate of return for the interest; and
(b) the * base interest rate for the day on which the return is paid or provided, plus 3 percentage points .
(3) Subsection ( 4) applies if:
(a) an amount would be * non - arm's length income of the * managed investment trust (disregarding that subsection); and
(b) the amount is a distribution from a trust , or a share of the * net income of a trust, if the trust is a party to th e scheme mentioned in paragraph ( 1)(a) .
(4) The amount is * non - arm's length income of the * managed investment trust only to the extent that the distribution or share of * net income is attributable to non - arm's length income of the trust mentioned in paragraph ( 3)( b ) ( on that a ssum ption that the trust were a managed investment trust) because of another operation of this section .
(5) Subsection ( 6 ) applies if:
(a) an amount (the first amount ) of * ordinary income or * statutory income of the * managed investment trust that would be * non - arm's length income of the managed investment trust (disregarding that subsection) is :
(i) a distribution from a trust that is a party to the scheme mentioned in paragraph ( 1)(a); or
(ii) a share of the * net income of a trust that is a party to that scheme ; and
( b ) another amount (the second amount ) of ordinary income or statutory income of the managed investment trust is :
(i) a distribution from another trust (whether or not the other trust is a party to that scheme); or
(ii) a share of the net income of another trust (whether or not the other trust is a party to that scheme); and
( c ) it is reasonable to conclude that the second amount would have been higher but for the first amount .
(6) The first amount is not * non - arm's length income of the * managed investment trust to the extent that the second amount would have been higher as mentioned in paragraph ( 5)( c ) .
275 - 615 Commissioner's determination in relation to amount of non - arm's length income
(1) The Commissioner may make a determination in writing that specifies an amount of * non - arm's length income for a specified * managed investment trust in relation to a specified income year if the Commissioner is satisfied that:
(a) the amount of non - arm's length income for the managed investment trust in relation to the income year is reflected in:
(i) if the trust is an * AMIT for the income year--one or more of its * trust components for the income year; or
(ii) otherwise--its * net income for the income year; and
(b) the managed investment trust is a party to the * scheme mentioned in paragraph 275 - 610 (1) (a) at a time in the income year in which the amount is derived ; and
(c) at least one the parties to that scheme is not a managed investment trust in relation to the income year .
Determination does not form part of assessment
(2) A determination under subsection ( 1) does not form part of an assessment .
Notice by Commissioner of determination
( 3 ) If the Commissioner makes a determination under subsection ( 1), the Commissioner must give a copy of the determination to the * managed investment trust concerned . The notice may be included in a notice of assessment .
Evidence of determination
( 4 ) The production of:
(a) a notice of a determination; or
(b) a document signed by the Commissioner, a Second Commissioner or a Deputy Commissioner purporting to be a copy of a determination;
is :
(c) conclusive evidence of the due making of the determination; and
(d) conclusive evidence that the determination is correct ( except in proceedings under Part IVC of the Taxation Administration Act 1953 on an appeal or review relating to the determination ) .
Objections
( 5 ) If a n entity to whom a determination relates is dissatisfied with the determination, the entity may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .
Taxation Administration Act 1953
6 Sections 12 - 400, 12 - 401, 12 - 402, 12 - 402A, 12 - 402B, 12 - 403 and 12 - 404 in Schedule 1
Repeal the sections .
7 After subsection 284 - 145(2B) in Schedule 1
Insert:
(2 C ) You are also liable to an administrative penalty if:
(a ) you are the trustee of a * managed investment trust in relation to an income year; and
( b ) to give effect to Subdivision 275 - L of the Income Tax Assessment Act 1997 (also the adjustment provision ) in relation to a * scheme, the Commissioner amends your assessment for the income year; and
( c ) as a result, you are liable to pay an additional amount of income tax (as the case requires) .
Note: Subdivision 275 - L of the Income Tax Assessment Act 1997 applies to non - arm's length income of managed investment trusts .
8 At the end of section 284 - 150 in Schedule 1
Add:
Scheme shortfall amount for managed investment trust non - arm's length income
( 6 ) Despite subsection ( 2), your scheme shortfall amount for a * scheme to which subsection 284 - 145(2C) applies is the total amount of additional income tax you are liable to pay as mentioned in that subsection .
( 7 ) Disregard your * scheme shortfall amount for a * scheme to which subsection 284 - 145(1) applies to the extent that scheme shortfall amount is attributable to additional tax that is, or is part of, your scheme shortfall amount for a scheme to which subsection 284 - 145(2C) applies .
9 S ubsection 284 - 160 ( 1 ) in Schedule 1
After "subsection 284 - 145(1)", insert "or (2C)" .