Income Tax Assessment Act 1936
Div 6D inserted by No 70 of 1999.
Subdiv B inserted by No 70 of 1999.
A closely held trust is:
(a) a trust where an individual has, or up to 20 individuals have between them, directly or indirectly, and for their own benefit, fixed entitlements to a 75% or greater share of the income, or a 75% or greater share of the capital, of the trust; or
(b) a discretionary trust;
except where the trust is an excluded trust.
102UC(2) Trustees of discretionary trusts treated as individuals.
For the purposes of paragraph (1)(a), if:
(a) a trustee of a discretionary trust holds a fixed entitlement to a share of the income or capital of the trust mentioned in that paragraph directly or indirectly; and
(b) no person holds that fixed entitlement directly or indirectly through the discretionary trust;
the trustee is taken to hold that fixed entitlement directly or indirectly as an individual and for the individual ' s own benefit.
102UC(3) Individuals treated as single individual.For the purposes of paragraph (1)(a), all of the following are taken to be a single individual:
(a) an individual, whether or not the individual holds fixed entitlements directly in the trust mentioned in that paragraph;
(b) the individual ' s relatives;
(c) in relation to any fixed entitlements in respect of which other individuals are nominees of the individual or of the individual ' s relatives - those other individuals. 102UC(4) Definitions.
In this section:
discretionary trust
means a trust that is not a fixed trust within the meaning of section
272-65
in Schedule
2F
.
Definition of " discretionary trust " amended by No 41 of 2011, s 3 and Sch 5 item 379, by substituting " in Schedule 2F " for " of Schedule 2F " , effective 27 June 2011.
(a) a trust to which paragraph (b), (c) or (d) of the definition of excepted trust in section 272-100 in Schedule 2F applies; or
(b) a unit trust whose units are listed on the stock market operated by ASX Limited.
(c) - (e) (Repealed by No 95 of 2019)
Definition of " excluded trust " amended by No 95 of 2019, s 3 and Sch 4 items 1 and 2, by substituting " Limited. " for " Limited; or " in para (b) and repealing para (c) to (e), effective 1 January 2020 and applicable in relation to years of income starting on or after 1 July 2019. Para (c) to (e) formerly read:
(c) a family trust; or
(d) a trust in relation to which an interposed entity election has been made and is in force in accordance with section 272-85 in Schedule 2F; or
(e) a trust that is covered by subsection 272-90(5) in Schedule 2F.
Definition of " excluded trust " amended by No 41 of 2011, s 3 and Sch 5 item 380, by substituting " in Schedule 2F " for " of Schedule 2F " in paras (a), (d) and (e), effective 27 June 2011.
Definition of " excluded trust " amended by No 97 of 2008 , s 3 and Sch 3 item 19, by substituting " the stock market operated by ASX Limited " for " the Australian Stock Exchange Limited " in para (b), effective 3 October 2008.
Definition of " excluded trust " amended by No 143 of 2007 , s 3 and Sch 4 item 13, by inserting paras (c), (d) and (e) at the end, applicable to the first income year starting on or after 24 September 2007 and later income years.
fixed entitlement
has the meaning given by sections
272-5
,
272-10
,
272-15
and
272-40
in Schedule
2F
.
Definition of " fixed entitlement " amended by No 41 of 2011, s 3 and Sch 5 item 381, by substituting " in Schedule 2F " for " of Schedule 2F " , effective 27 June 2011.
indirectly
has the meaning given by section
272-20
in Schedule
2F
.
Definition of " indirectly " amended by No 41 of 2011, s 3 and Sch 5 item 382, by substituting " in Schedule 2F " for " of Schedule 2F " , effective 27 June 2011.
S 102UC inserted by No 70 of 1999.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.