Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

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

Subdivision 727-E - Key concepts  

Common-ownership nexus and ultimate stake of a particular percentage

SECTION 727-410   Ultimate stake of a particular percentage in a fixed trust  

727-410(1)  
This section sets out 2 tests of whether an entity has an ultimate stake of a particular percentage (the test percentage ) in a * fixed trust.

Note:

In applying the tests, follow the rules in section 727-415 .

Income distributions

727-410(2)  
The first test is that, after tracing, to the * ultimate owners who ultimately hold them, the direct and indirect rights to receive distributions of trust income, those rights are held by the entity to the extent of the test percentage of each such distribution. Capital distributions

727-410(3)  
The second test is that, after tracing, to the * ultimate owners who ultimately hold them, the direct and indirect rights to receive distributions of trust capital, those rights are held by the entity to the extent of the test percentage of each such distribution.


 

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