Taxation Administration Act 1953

This section applies if:

an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust’s *net income, or in the case of an *AMIT, the trust’s total assessable income, for the income year); and

the amount mentioned in paragraph (a) is, or is attributable to, an amount derived, received or made from another entity (the second entity); and

the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12‑405(1)(a), (b), (c), (d) or (e).

The amount is MIT trading trust income of the *managed investment trust if:

the managed investment trust holds a *total participation interest in the second entity of greater than nil; and

the amount arises because of that total participation interest; and

the second entity:

is a trading trust for the purposes of Division 6C of Part III of the Income Tax Assessment Act 1936 in relation to the income year; or

is a partnership or a trust that is not a unit trust, but would be such a trading trust in relation to the income year if it were a unit trust throughout the income year; and

the second entity is not a *public trading trust in relation to the income year.

The amount is not MIT trading trust income of the *managed investment trust under subsection (2) to the extent that it is attributable to a *capital gain made from *CGT event E4 or *CGT event E10.