Income tax: can a company satisfy the requirements of section 80A or section 80E of the Income Tax Assessment Act 1936 if 50% or more of its shares are held by the trustee(s) of a discretionary trust(s)?
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Notice of Withdrawal
1. TD 2000/27 discusses the application of section 80A or section 80E of the Income Tax Assessment Act 1936 (ITAA 1936), where 50% or more of a company's shares are held by the trustee(s) of a discretionary trust(s).
2. TD 2000/27 relates to section 80A of the ITAA 1936, which has now been replaced by section 165-12 of the Income Tax Assessment Act 1997 (ITAA 1997). It also relates to section 80E of the ITAA 1936, which has since been repealed. Further to this, special tracing rules now exist in Division 165 of the ITAA 1997 in situations where trusts are shareholders.
Commissioner of Taxation
20 December 2016
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carry forward losses
continuity of ownership
Franklin's Selfserve Pty Ltd v. FC of T
(1970) 125 CLR 52
70 ATC 4079
(1970) 1 ATR 673
Gartside and Another v. Inland Revenue Commissioners
 1 All ER 121
Lutheran Church of Australia South Australia District Incorporated v. Farmers' Co-operative Executors and Trustees Limited and Others
(1970) 121 CLR 628
Re Weir's Settlement MacPherson and Another v. Inland Revenue Commissioners
 1 All ER 297
96 ATC 330
AAT Case 10,898
(1996) 32 ATR 1259