Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-25 - PARTICULAR KINDS OF TRUSTS  

Division 275 - Australian managed investment trusts: general  

Subdivision 275-A - Meaning of managed investment trust  

Operative provisions

SECTION 275-25   Widely-held requirements for registered MIT - special case for entities covered by subsection 275-20(4)  

275-25(1)  
The trust satisfies the requirements in this subsection in relation to the income year if:


(a) one or more entities covered by subsection 275-20(4) have a total *MIT participation interest in the trust of more than 25% at the time the payment mentioned in paragraph 275-10(3)(a) is made; and


(b) at no time in the income year does an entity (other than an entity covered by subsection 275-20(4) ) have a MIT participation interest in the trust of more than 60%.

275-25(2)  
For the purposes of paragraphs (1)(a) and (b):


(a) if:


(i) an entity covered by subsection 275-20(4) has a *MIT participation interest (the first interest ) in the trust; and

(ii) another entity covered by subsection 275-20(4) also has a MIT participation interest (the second interest ) in the trust;
disregard the second interest to the extent that it arises through the existence of the first interest; and


(b) if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a *chain of trusts - do not treat a trust in the chain of trusts as having a MIT participation interest in the trust.

275-25(3)  
For the purposes of paragraph (2)(b), treat an entity covered by subsection 275-20(4) as an entity that is not a trust.

275-25(4)  
For the purposes of paragraphs (1)(a) and (b), apply the rules in subsection 275-20(7) .


 

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