Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 485

             (1)  The operative provision applies to a taxpayer in relation to a FIF or a FLP in accordance with this section. Section 485A also has effect when the operative provision is applied to work out the net income of a partnership or trust estate.

             (2)  The application of the operative provision to a taxpayer in relation to a FIF or a FLP is to be worked out separately in relation to each notional accounting period of the FIF or FLP.

             (3)  If:

                     (a)  a taxpayer had an interest or interests in a FIF at the end of a year of income; and

                     (b)  that year of income is the 1992‑93 year of income or a later year of income; and

                     (c)  the taxpayer was a Part XI Australian resident at any time in that year of income;

the operative provision applies to the taxpayer in relation to the FIF in respect of the notional accounting period of that FIF that ended in that year of income.

             (4)  If:

                     (a)  a taxpayer had an interest or interests in a FLP at any time during the notional accounting period of the FLP that ends in a year of income; and

                     (b)  that year of income is the 1992‑93 year of income or a later year of income; and

                     (c)  the taxpayer was a Part XI Australian resident at any time in that year of income;

then, subject to subsection (5), the operative provision applies to the taxpayer in relation to the FLP in respect of that notional accounting period.

             (5)  The operative provision does not apply to the taxpayer in relation to a FLP in respect of the 1992‑93 year of income if the taxpayer did not have any interest or interests in the FLP at the end of that year of income.

             (6)  Without affecting the circumstances in which, apart from this subsection, a taxpayer would be taken to be a Part XI Australian resident at a time in a year of income, a taxpayer in the capacity of a trustee of a trust that is an Australian trust or a resident superannuation entity at a time in a year of income is taken for the purposes of subsection (3) or (4) to have been a Part XI Australian resident at that time.

             (7)  The application of the operative provision to a taxpayer in relation to a FIF or a FLP is subject to Divisions 2 to 15.