• Same business test

    (Subdivision 269-F of Schedule 2F to the ITAA 1936.)

    The same business test (SBT) applies to listed widely held trusts where the 50% stake test has been failed after an abnormal trading in relation to a tax loss or debt deduction.

    A listed widely held trust passes the SBT test during a period (the same business test period) in relation to a time (the test time) if throughout the period it carries on the same business as it carried on immediately before the test time.

    However, the trust doesn't pass the SBT if:

    • at any time during the same business test period, it derives assessable income from
      • a business of a kind that it didn't carry on before the test time, or
      • a transaction of a kind that it had not entered into in the course of its business operations before the test time.
       
    • before the test time
      • it began to carry on a business it had not previously carried on, or
      • in the course of its business operations, it entered into a transaction of a kind that it had not previously entered into, and
      • it did so for the purpose of being taken to have carried on throughout the same business test period the same business as it carried on immediately before the test time.
       
    • at any time during the same business test period, it incurs expenditure
      • in carrying on a business of a kind that it didn't carry on before the test time, or
      • as a result of a transaction of a kind that it had not entered into in the course of its business operations before the test time.
       
      Last modified: 22 Apr 2016QC 18663