INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 713 - Rules for particular kinds of entities  

Subdivision 713-C - Some unit trusts treated like head companies of consolidated groups  

Effects of choice

SECTION 713-135   Effects of choice  

713-135(1)  
If the trust makes the choice, the law (the applied law ) described in subsection (2) applies in relation to the trust in a way corresponding to the way in which that law applies to a company. The applied law applies in that way in relation to the trust or trustee (as appropriate):


(a) with the appropriate modifications (including those described in section 713-140 , so far as they are appropriate); and


(b) in relation to all times at or after the start of the day specified in the choice; and


(c) so far as it is relevant to the operation of the applied law in relation to the trust and a time at or after the start of that day - in relation to a time when the trust existed before the start of that day.

Note 1:

The application of the applied law in this way affects not only the trust and the trustee but also other entities connected with the trust, such as members of the trust and entities in which the trustee holds membership interests. Some examples of that effect are that:

  • (a) a consolidated group comes into existence on the day specified in the choice; and
  • (b) there may be a scrip for scrip roll-over for an entity exchanging its shares in a company for membership interests in the trust.
  • Note 2:

    The application of the applied law in this way involves treatment of characteristics, things and persons relating to the trust corresponding to the treatment by the applied law of analogous characteristics, things and persons relating to a company (as envisaged in the note to section 713-130 ). These are some examples of analogous things and analogous persons:

  • (a) units in the trust and shares in a company;
  • (b) unitholders in the trust and shareholders in a company;
  • (c) trust voting interests and voting shares in a company.
  • 713-135(2)  
    The applied law is:


    (a) this Act (other than this Subdivision); and


    (b) an Act that imposes any impost payable under this Act; and


    (c) the Income Tax Rates Act 1986 ; and


    (d) the Taxation Administration Act 1953 , so far as it relates to an Act covered by paragraph (a), (b) or (c); and


    (e) any other Act, so far as it relates to an Act covered by paragraph (a), (b), (c) or (d); and


    (f) regulations and other legislative instruments under an Act covered by any of the preceding paragraphs.

    713-135(3)  
    Subsection (1) does not make an entity liable to a criminal, civil or administrative penalty.

    Note:

    An entity is liable to such a penalty under the applied law only if that law, as it applies apart from subsection (1), makes the entity liable.


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