Tax Laws Amendment (2007 Measures No. 5) Act 2007 (164 of 2007)

Schedule 8   Australian property trusts and stapled securities

Part 1   Main amendments

Income Tax Assessment Act 1936

3   At the end of section 102N

Add:

(2) Despite paragraph (1)(b), a unit trust is not a trading trust only because it has acquired ownership interests (including a controlling interest) in, or controls:

(a) a foreign entity whose business, when considered together with the businesses of entities that the foreign entity controls or is able to control, directly or indirectly, consists primarily of investing in land outside Australia for the purpose, or primarily for the purpose, of deriving rent; or

(b) a foreign entity controlled, or able to be controlled, directly or indirectly, by an entity covered by paragraph (a).

(3) In this section:

entity has the same meaning as in the Income Tax Assessment Act 1997.