Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 266 - Income tax consequences for fixed trusts of abnormal trading or change in ownership  

Subdivision 266-E - Effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust  

SECTION 266-155   UNLISTED VERY WIDELY HELD TRUST OR WHOLESALE WIDELY HELD TRUST MAY BE REQUIRED TO WORK OUT ITS NET INCOME AND TAX LOSS IN A SPECIAL WAY  

266-155(1)  
If a trust is covered by subsection (2), it must work out its net income and tax loss for the income year under Division 268 (How to work out a trust ' s net income and tax loss for the income year), unless it meets either:

  • · the condition in subsection 266-165(1) ; or
  • · the condition in subsection 266-165(2) .
  • 266-155(2)  
    A trust is covered by this subsection if:


    (a) in the period (the test period ) consisting of so much of the income year as occurs after the end of any start-up period (within the meaning of subsection 272-120 (3)), the trust:


    (i) was at all times an unlisted very widely held trust; or

    (ii) was at all times a wholesale widely held trust; or

    (iii) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or

    (iv) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and


    (b) in the test period, the trust was not at all times an excepted trust.

    Note:

    See section 415-25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.


    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.