12‑438 MIT cross staple arrangement inco12‑438 MIT cross staple arrangement income—de minimis exception

#### 12‑438 MIT cross staple arrangement income—de minimis exception (1) For the purposes of subsection 12‑437(4), this subsection covers an amount if: (a) the amount is \*MIT cross staple arrangement income for the income year of an \*asset entity in relation to the \*cross staple arrangement; and (b) the MIT cross staple arrangement income of the asset entity for the previous income year does not exceed 5% of the amount mentioned in subsection (3). (2) For the purposes of subsection (1), in working out the \*MIT cross staple arrangement income of the \*asset entity for the previous income year, disregard subsections 12‑437(4) and (5). (3) The amount is: (a) if the \*asset entity is not an \*AMIT for the income year—the assessable income of the asset entity for the previous income year (worked out for the purposes of determining the \*net income of the asset entity for the income year); or (b) if the asset entity is an AMIT for the income year—the total assessable income (as mentioned in subsection 276‑265(2) of the Income Tax Assessment Act 1997) of the asset entity for the previous income year. (4) For the purposes of subsection (3), in working out the assessable income, or the total assessable income, of the \*asset entity for the previous income year, disregard any \*net capital gain of the asset entity for that year. (5) If the \*asset entity did not exist in the previous income year: (a) treat references in this section to the previous income year as instead being references to the income year; and (b) treat references in this section to the \*MIT cross staple arrangement income of the asset entity as instead being references to a reasonable estimate of the MIT cross staple arrangement income of the asset entity; and (c) treat references in this section to the assessable income of the asset entity as instead being references to a reasonable estimate of the assessable income of the asset entity; and (d) treat references in this section to the total assessable income of the asset entity as instead being references to a reasonable estimate of the total assessable income of the asset entity. (6) If the \*asset entity exists in an income year, but is not a \*managed investment trust in relation to that income year, for the purposes of this section, treat it as a managed investment trust in relation to that income year that is not an \*AMIT for that income year.