Income Tax Assessment Act 1997



Division 727 - Indirect value shifting affecting interests in companies and trusts, and arising from non-arm ' s length dealings  

Subdivision 727-E - Key concepts  

Ultimate controller

SECTION 727-360   Control (for value shifting purposes) of a fixed trust  

40% stake test

An entity controls (for value shifting purposes) a * fixed trust if the entity, or the entity and its * associates between them, have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any distribution of trust income, or trust capital, to beneficiaries of the trust. Other tests

An entity also controls (for value shifting purposes) a * fixed trust if:

(a) the entity, or an * associate of the entity, whether alone or with other associates (the relevant entity ), has the power to obtain the beneficial enjoyment of the trust ' s capital or income (whether or not by exercising its power of appointment or revocation, and whether with or without another entity ' s consent); or

(b) the relevant entity is able to control the application of the trust ' s capital or income in any manner (whether directly or indirectly); or

(c) the relevant entity is able to do a thing mentioned in paragraph (a) or (b) under a * scheme; or

(d) a trustee of the trust is accustomed or is under an obligation (whether formally or informally), or might reasonably be expected, to act in accordance with the relevant entity ' s directions, instructions or wishes; or

(e) the relevant entity is able to remove or appoint a trustee of the trust.


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