Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 270 - Schemes to take advantage of deductions  

SECTION 270-25   OUTSIDER TO TRUST  

Outsider to family trust

270-25(1)    
If the trust mentioned in paragraph 270-10(1)(a) is a family trust, an outsider to the trust is a person other than:

(a) the trustee of the trust; or

(b) a person with a fixed entitlement to a share of the income or capital of the trust; or

(c) the individual specified in the trust ' s family trust election; or

(d) a member of the individual ' s family; or

(da) a trust with the same individual specified in its family trust election; or

(e) a company, partnership or trust that made an interposed entity election to be included in the individual ' s family group, where the election was in force (including before it was made) when the scheme mentioned in paragraph 270-10(1)(b) commenced; or

(f) a fixed trust, company or partnership (an entity ) where, at all times while the scheme mentioned in paragraph 270-10(1)(b) was being carried out:

(i) the individual specified in the trust ' s family trust election; or

(ii) one or more members of the individual ' s family; or

(iii) the trustees of one or more family trusts, provided the individual is specified in the family trust election of each of those family trusts;

or any combination of the above, had fixed entitlements, directly or indirectly, and for their own benefit, to all of the income and capital of the entity.

Outsider to non-family trust

270-25(2)    
If the trust mentioned in paragraph 270-10(1)(a) is not a family trust, an outsider to the trust is a person other than:

(a) the trustee of the trust; or

(b) a person with a fixed entitlement to a share of the income or capital of the trust.