Income Tax Assessment Act 1936
SCHEDULE 2F
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TRUST LOSSES AND OTHER DEDUCTIONS
Division 266
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Income tax consequences for fixed trusts of abnormal trading or change in ownership
This section applies to a trust that:
(a) can deduct in the income year a tax loss from a loss year; and
(b) was a fixed 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 a widely held unit trust at all times in the test period; and
(d) 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 section
266-40
; or
•
the conditions in section
266-45
.
Subdivision 266-B
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Effect of change in ownership of fixed trust
SECTION 266-25
FIXED TRUST MAY BE DENIED TAX LOSS DEDUCTION
Type of trust to which this section applies
266-25(1)
This section applies to a trust that:
(a) can deduct in the income year a tax loss from a loss year; and
(b) was a fixed 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 a widely held unit trust at all times in the test period; and
(d) was not an excepted trust at all times in the test period.
To find out the meaning of fixed trust : see section 272-65 .
To find out the meaning of widely held unit trust : see section 272-105 .
To find out the meaning of excepted trust : see section 272-100 .
Condition for deducting tax loss 266-25(2)The trust cannot deduct the tax loss unless it meets either:
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