INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 267 - Income tax consequences for non-fixed trusts of change in ownership or control  

Subdivision 267-B - Deducting tax losses, and certain amounts in respect of debts, from earlier years  

SECTION 267-15   WHAT THIS SUBDIVISION IS ABOUT  


A non-fixed trust cannot deduct:

  • · a tax loss from a loss year; or
  • · certain amounts in respect of debts incurred in earlier income years;
  • unless:

  • · if applicable, it meets an ownership test based on income and capital distributions; and
  • · it did not fail that test in a previous year; and
  • · if applicable, it meets an ownership test based on fixed entitlements to income and capital; and
  • · its control has stayed the same.
  • Note:

    The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415-25 and 415-30 of the Income Tax Assessment Act 1997 .


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