(1) This section has effect for amounts represented by or reasonably attributable to fund payments made in relation to the first income year starting on or after the first 1 July after the day on which the Tax Laws Amendment (Election Commitments No. 1) Act 2008 receives the Royal Assent by a trust that is a managed investment trust in relation to that year.
(2) If you are a resident of an information exchange country, subsection 840-805(1) of the Income Tax Assessment Act 1997 does not apply to the amounts to the extent that it would otherwise apply to you.
(3) An entity is a resident of an information exchange country if:
(a) the entity is a resident of that country for the purposes of the taxation laws of that country; or
(b) if there are no taxation laws of that country applicable to the entity or the entity's residency status cannot be determined under those laws:
(i) for an individual--the individual is ordinarily resident in that country; or
(ii) for another entity--the entity is incorporated or formed in that country and is carrying on a business in that country.
(4) Instead, you are liable to pay income tax on the amounts (reduced as mentioned in subsection (5)) at the rate declared by the Parliament.
Note: The tax is imposed by the Income Tax (Managed Investment Trust Transitional) Act 2008 .
(5) The amounts are reduced by any loss or outgoing of yours to the extent that:
(a) it is incurred in gaining or producing the amounts; or
(b) it is necessarily incurred in carrying on a business for the purpose of gaining or producing the amounts.