INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 269 - Concepts and tests applied in Divisions 266 and 267  

Subdivision 269-F - Same business test  

SECTION 269-100   PASSING THE SAME BUSINESS TEST  

Basic meaning

269-100(1)  
A listed widely held trust passes the same business test during a period (the same business test period ) in relation to a time (the test time ) if throughout the same business test period it carries on the same business as it carried on immediately before the test time. 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 same business test if, at any time during the same business 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. Second exception

269-100(4)  
The trust also does not pass the same business test 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 same business test period the same business as it carried on immediately before the test time.

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 test if, at any time during the same business 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.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.