Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 195 - Special types of company  

Subdivision 195-C - Corporate collective investment vehicles  

Operative provisions

SECTION 195-110   Each sub-fund of a CCIV is taken to be a separate trust  

195-110(1)  
For each *sub-fund of a *CCIV, the business, *assets and *liabilities of the sub-fund are taken to constitute the trust estate of a separate trust, of which the CCIV is the trustee and the *members of the sub-fund are the beneficiaries.

195-110(2)  
A trust that is taken to exist because of the application of subsection (1) to a *sub-fund of a *CCIV is a CCIV sub-fund trust .

Note:

The combined effect of this section and subsections 960-100(2) and (3) is that a CCIV is a different entity in its capacity as trustee of each of its CCIV sub-fund trusts.

Because of subsection 195-105(1) , the tax treatment of the CCIV in those capacities excludes the tax treatment that would otherwise apply to the CCIV as a company. Also, the tax treatment of members of the CCIV is based on them being treated as beneficiaries of their respective CCIV sub-fund trusts, to the exclusion of the tax treatment that would otherwise apply to them as members of a company.

Example 1:

CCIV A has only one sub-fund (sub-fund A). CCIV B has only one sub-fund (sub-fund B).

CCIV A holds shares in CCIV B. The shares are referable to sub-fund B. They are assets of sub-fund A.

In its capacity as trustee of the CCIV sub-fund trust for sub-fund A, CCIV A is a beneficiary of the CCIV sub-fund trust for sub-fund B.

Example 2:

A CCIV has 2 sub-funds: sub-fund A and sub-fund B.

As permitted by section 1230Q of the Corporations Act 2001 , the CCIV acquires, in respect of sub-fund A, shares that are referable to sub-fund B. The shares are assets of sub-fund A.

In its capacity as trustee of the CCIV sub-fund trust for sub-fund A, the CCIV is a beneficiary of the CCIV sub-fund trust for sub-fund B.


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