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-C - Effect of change in ownership of unlisted widely held trust  

SECTION 266-90   IF ABNORMAL TRADING OR END OF INCOME YEAR, TRUST MUST PASS THE 50 % STAKE TEST  

266-90(1)    
If this section is being applied for the purposes of section 266-75 or 266-85 , on each occasion when either of the following events occurs:

(a) an abnormal trading in the trust ' s units occurs during the test period;

(b) an income year of the trust ends during the test period (including at the end of the test period);

the trust must pass the 50 % stake test in respect of the following times:

(c) the beginning of the test period;

(d) immediately after the event occurs.

To find out whether the trust passes the 50 % stake test: see Subdivision 269-C .

266-90(2)    
If this section is being applied for the purposes of section 266-80 , on each occasion when an abnormal trading in the trust ' s units occurs during the test period, the trust must pass the 50 % stake test in respect of the following times:

(a) the beginning of the test period; and

(b) immediately after the abnormal trading occurs.