SCHEDULE 2F
-
TRUST LOSSES AND OTHER DEDUCTIONS
Division 269
-
Concepts and tests applied in Divisions 266 and 267
History
Div 269 inserted by No 17 of 1998.
Subdivision 269-F
-
Business continuity test
History
Subdiv 269-F heading substituted by No 7 of 2019, s 3 and Sch 1 item 30, effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015. The heading formerly read:
Subdivision 269-F
-
Same business test
Subdiv 269- F inserted by No 17 of 1998.
SECTION 269-100
PASSING THE BUSINESS CONTINUITY TEST
Basic meaning
269-100(1)
A listed widely held trust
passes the business continuity test
during a period (the
business continuity test period
) in relation to a time (the
test time
) if throughout the business continuity test period it carries on the same business as it carried on immediately before the test time.
History
S 269-100(1) amended by No 7 of 2019, s 3 and Sch 1 items 15 and 16, by substituting
"
passes the business continuity test
during a period (the
business continuity test period
)
"
for
"
passes the same business test
during a period (the
same business test period
)
"
and
"
business continuity test period
"
for
"
same business test period
"
, effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015.
Relevance of being a trust
269-100(2)
The mere fact of being a trust does not mean that the trust cannot carry on a business.
First exception
269-100(3)
However, the trust does
not
pass the business continuity test under this section if, at any time during the business continuity test period, it derives assessable income from:
(a)
a business of a kind that it did not carry on before the test time; or
(b)
a transaction of a kind that it had not entered into in the course of its business operations before the test time.
History
S 269-100(3) amended by No 7 of 2019, s 3 and Sch 1 item 17, by substituting
"
the business continuity test under this section if, at any time during the business continuity test period,
"
for
"
the same business test if, at any time during the same business test period,
"
, effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015.
Second exception
269-100(4)
The trust also does
not
pass the business continuity test under this section if, before the test time, it:
(a)
began to carry on a business it had not previously carried on; or
(b)
in the course of its business operations, entered into a transaction of a kind that it had not previously entered into;
and did so for the purpose, or for purposes including the purpose, of being taken to have carried on throughout the business continuity test period the same business as it carried on immediately before the test time.
History
S 269-100(4) amended by No 7 of 2019, s 3 and Sch 1 items 18 and 19, by substituting
"
pass the business continuity test under this section
"
for
"
pass the same business test
"
and
"
business continuity test period
"
for
"
same business test period
"
, effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015.
S 269-100(4) amended by No 124 of 2013, s 3 and Sch 2 item 63, by substituting
"
began
"
for
"
started
"
in para (a), effective 29 June 2013.
Third exception
269-100(5)
So far as the test is applied for the purpose of section
266-115
(Listed widely held trust may be required to work out its net income and tax loss in a special way) and section
268-20
(Widely held unit trust
'
s income year to be divided into periods), the trust also does
not
pass the business continuity test under this section if, at any time during the business continuity test period, it incurs expenditure:
(a)
in carrying on a business of a kind that it did not carry on before the test time; or
(b)
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.
History
S 269-100(5) amended by No 7 of 2019, s 3 and Sch 1 item 20, by substituting
"
the business continuity test under this section if, at any time during the business continuity test period,
"
for
"
the test if, at any time during the same business test period,
"
, effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015.
History
S 269-100 inserted by No 17 of 1998.