A New Tax System (Goods and Services Tax) Amendment Regulations 2003 (No. 1) (37 of 2003)

Schedule 1   Amendments

[13]   After regulation 48-10.03

insert

48-10.03A Alternative membership requirements for groups of fixed trusts

(1) This regulation sets out the alternative requirements mentioned in paragraph 48-10.03 (1) (a) for a trust to be a member of a GST group that consists only of fixed trusts.

Note The fixed trust must also satisfy other membership requirements set out in section 48-10 of the Act.

(2) The fixed trust must be a member of the same 90% owned group as all other fixed trusts in that group.

(3) For this regulation:

(a) two fixed trusts are members of the same 90% owned group if:

(i) the trustee of one of the trusts has at least a 90% stake in the other trust; or

(ii) the trustee of a third trust has at least a 90% stake in each of the two trusts; and

(b) the trustee of a fixed trust (the head trust ) has at least a 90% stake in another fixed trust (the sub-trust ) if the trustee:

(i) owns at least 90% of the issued units in the sub-trust (whether directly or indirectly through 1 or more interposed trusts or companies); and

(ii) has the right to receive at least 90% of any distribution of capital or income of the sub-trust.