Income Tax Assessment Act 1997
For the purposes of step 3 in the table in section 705-60 , if the joining entity is a trust, the step 3 amount is the sum of the trust ' s realised profits, to the extent that:
(a) they accrued to the joined group before the joining time (as defined in subsection 705-90(7) ); and
(b) as at the joining time, they have not been distributed to * members of the trust; and
(c) if each of them were distributed as mentioned in paragraphs 705-90(7)(a) and (b):
(i) they would be distributed otherwise than in respect of a unit or an interest in the trust; or
(ii) their non-assessable parts for the purposes of section 104-70 would be disregarded in working out whether or not a * capital gain had been made because of CGT event E4;
except to the extent that they recouped losses of any * sort that accrued to the joined group before the joining time (as defined in subsection 705-90(8) ).
If the joining entity, or an entity interposed between the head company and the joining entity, is a non-fixed trust, this section may involve determining how a power of appointment would have been exercised. Section 713-50 lists matters to have regard to in determining this.
Subsection (1) does not apply to a trust that is a * corporate tax entity at the joining time.
This excludes corporate unit trusts and public trading trusts, which are covered by the imputation system.