CTHIn ForceAct
Taxation Administration Act 1953
12A‑40 Meaning of AMIT royalty payment12A‑40 Meaning of AMIT royalty payment
Start here
Get a plain-English read of 12A‑40 Meaning of AMIT royalty payment
Turn the raw legal text into a practical explanation grounded in Taxation Administration Act 1953.
#### 12A‑40 Meaning of AMIT royalty payment
(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 \*AMIT royalty 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 total of the \*determined member components for the \*AMIT for the income year of the character of a \*royalty that is subject to a requirement to withhold under Subdivision 12‑F.
(4) To work out the amount of an AMIT royalty payment, apply subsections 12A‑30(4), (5), (6) and (7). For this purpose:
(a) treat references in those subsections to AMIT dividend payments as instead being references to AMIT royalty payments; and
(b) treat the reference in subsection 12A‑30(4) to “the amount mentioned in subsection (3)” as instead being a reference to “the amount mentioned in subsection 12A‑40(3)”.