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-D - Effect of abnormal trading on listed widely held trust  

SECTION 266-125   THERE MUST BE NO ABNORMAL TRADING (SUBJECT TO 50% STAKE OR BUSINESS CONTINUITY EXCEPTIONS)  

266-125(1)  
There must be no abnormal trading in the trust ' s units during the test period.

To find out the meaning of abnormal trading : see Subdivision 269-B .

266-125(2)  
If there is abnormal trading on one or more occasions, then either:


(a) for each abnormal trading, the trust must pass the 50% stake test in respect of the following times:


(i) the beginning of the test period;

(ii) immediately after the abnormal trading; or


(b) if it does not, at all times after the first or only abnormal trading in respect of which the requirement in paragraph (a) is not satisfied and before the end of the test period, the trust must pass the business continuity test in relation to the time immediately before that abnormal trading.

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

To find out whether the trust passes the business continuity test: see Subdivision 269-F .


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