12A‑110 Meaning of fund payment—AMITs12A‑110 Meaning of fund payment—AMITs

12A‑110 Meaning of fund payment—AMITs

(1) This section applies to a trust that is an *AMIT for an income year. (2) The object of this section is to ensure that the total of the *fund payments that the trustee of the *AMIT makes in relation to the income year equals, as nearly as practicable, the amount mentioned in subsection (3). (3) The amount is the sum of the following amounts: (a) total of the *determined member components for the *AMIT for the income year of a character relating to assessable income, disregarding determined member components (the excluded components) of any of the following characters: (i) the character of a *discount capital gain from a *CGT asset that is not *taxable Australian property; (ii) the character of a *capital gain (other than a discount capital gain) from a CGT asset that is not taxable Australian property; (iii) the character of a dividend (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936) that is subject to, or exempted from, a requirement to withhold under Subdivision 12‑F; (iv) the character of interest (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936) that is subject to, or exempted from, a requirement to withhold under Subdivision 12‑F; (v) the character of a *royalty that is subject to, or exempted from, a requirement to withhold under Subdivision 12‑F; (vi) the character of *ordinary income, or *statutory income, from a source other than an *Australian source; (vii) if a legislative instrument under subsection (4) specifies a character—that character; (b) the total of each *capital loss of the AMIT from a *CGT event that: (i) happened in the income year to a CGT asset that is not taxable Australian property; and (ii) has been applied against a capital gain from a CGT event that happened in relation to a CGT asset that is taxable Australian property; but only to the extent that each such capital loss has been so applied in the income year; (c) the total of each amount to which subsection (3A) applies in relation to the income year. (3A) If: (a) the AMIT has a *net capital loss for an earlier income year; and (b) one or more of the *capital losses the trust made during that earlier income year were from *CGT events that happened in relation to *CGT assets that were not *taxable Australian property; and (c) in relation to the income year mentioned in paragraph (3)(c), some or all of the net capital loss is applied against a *capital gain from a CGT event that happens in relation to a CGT asset that is taxable Australian property; this subsection applies, for the income year mentioned in paragraph (3)(c), to an amount equal to so much of the net capital loss that is so applied as related to capital losses mentioned in paragraph (b) of this subsection. (4) The Commissioner may, by legislative instrument, specify one or more characters for the purposes of subparagraph (3)(a)(vii). (5) A payment (the actual or deemed payment) that the trustee of a trust makes in relation to an income year is a fund payment in relation to that year. However, the amount of the fund payment is worked out under the following method statement, and may be: (a) the amount of the actual or deemed payment; or (b) the amount of the actual or deemed payment, increased or reduced as a result of the method statement.