Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 268 - How to work out a trust ' s net income and tax loss for the income year  

Subdivision 268-B - Dividing the income year into periods  

SECTION 268-15   INCOME YEAR OF FIXED TRUST TO BE DIVIDED INTO PERIODS - SECOND CASE  

268-15(1)  
If:


(a) a trust ' s net income and tax loss for the income year are required by section 266-30 to be worked out under this Division; and


(b) the trust met the requirements of subsections 266-45(2) and (4) ;

the income year is divided into periods as follows.

268-15(2)  


The first period begins at the beginning of the income year. Each later period begins immediately after the end of the previous period.

268-15(3)  
The last period ends at the end of the income year. Each period (except the last) ends at the earliest of:


(a) the latest time that would result in the persons holding fixed entitlements to shares of the income or shares of the capital of:


(i) if the trust met the requirements of paragraph 266-45(2)(a) - the trust; or

(ii) if the trust met the requirements of paragraph 266-45(2)(b) - the holding entity mentioned in that paragraph;
and the percentages of the shares that they hold, remaining the same during the whole of the period; and


(b) the times that, for all of the non-fixed trusts (other than excepted trusts) holding directly or indirectly a fixed entitlement to a share of the income or capital of the trust at any time during the income year, are the latest times that would result in individuals having more than a 50% stake in their income or capital; and


(c) the earliest time in the period when a group begins to control a non-fixed trust (other than an excepted trust) that holds directly or indirectly a fixed entitlement to a share of the income or capital of the trust at any time during the income year.

To find out when a group begins to control a trust: see Subdivision 269-E .


 

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