INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 270 - Schemes to take advantage of deductions  

SECTION 270-15   270-15   TAX CONSEQUENCES OF SCHEMES  


If the requirements of subsection 270-10 (1) are satisfied, the consequences are that:


(a) to the extent (if any) that the deduction mentioned in paragraph 270-10(1)(a) relates exclusively, or may appropriately be related, to the scheme assessable income, the deduction is not allowable; and


(b) if the net income of the trust is less than the scheme assessable income or there is no net income - the trust has a net income equal to, or the net income is increased so that it equals, the scheme assessable income; and


(c) paragraph (b) and the scheme assessable income are disregarded in working out any tax loss incurred by the trust in the income year; and


(d) if paragraph (b) applies and the deduction mentioned in paragraph 270-10(1)(a) is for a tax loss - paragraph (b) and the scheme assessable income are disregarded in working out any deduction in respect of the tax loss allowable after the income year.


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