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
This section applies to a trust that:
(a) can in the income year deduct a tax loss from a loss year; and
(b) was a listed widely held trust at all times in the period (the test period ) from the beginning of the loss year until the end of the income year; and
(c) was not an excepted trust at all times in the test period.
The trust cannot deduct the tax loss unless it meets either:•
the condition in subsection
266-125(1)
; or
•
the condition in subsection
266-125(2)
.
Additional restriction on deducting tax loss
266-110(3)
Even if it meets either of the conditions, it still cannot deduct the tax loss, or part of the tax loss, if section 266-135 (which deals with certain debt deductions) prevents it from doing so.
Subdivision 266-D
-
Effect of abnormal trading on listed widely held trust
SECTION 266-110
LISTED WIDELY HELD TRUST MAY BE DENIED TAX LOSS DEDUCTION
Type of trust to which this section applies
266-110(1)
This section applies to a trust that:
(a) can in the income year deduct a tax loss from a loss year; and
(b) was a listed widely held trust at all times in the period (the test period ) from the beginning of the loss year until the end of the income year; and
(c) was not an excepted trust at all times in the test period.
To find out the meaning of listed widely held trust : see section 272-115 .
To find out the meaning of excepted trust : see section 272-100 .
Condition for deducting tax loss 266-110(2)The trust cannot deduct the tax loss unless it meets either:
Even if it meets either of the conditions, it still cannot deduct the tax loss, or part of the tax loss, if section 266-135 (which deals with certain debt deductions) prevents it from doing so.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.