Income Tax (Transitional Provisions) Act 1997
For the purpose of working out whether you are a small business entity for the 2007-08, 2008-09, 2009-10 or 2010-11 income year (each a relevant income year ) for the purposes of a provision to which subsection (3) applies:
(a) subsection 328-125(4) of the Income Tax Assessment Act 1997 does not apply; and
(b) the following subsection applies instead. 328-112(2)
An entity (the first entity ) controls a discretionary trust for a relevant income year if, for any of the 4 income years (a previous income year ) before that year:
(a) if the previous income year is before the 2007-08 income year - the trustee of the trust made a distribution of $100,000 or more to the first entity, any of its affiliates, or the first entity and any of its affiliates; or
(b) if the previous income year is the 2007-08 income year or a later income year:
(i) the trustee of the trust paid to, or applied for the benefit of, the first entity, any of the first entity ' s affiliates, or the first entity and any of its affiliates, any of the income or capital of the trust; and
(ii) the percentage (the control percentage ) of the income or capital paid or applied is at least 40% of the total amount of income or capital paid or applied by the trustee for that year.
This subsection applies to the following provisions:
(a) Subdivisions 328-D of the Income Tax Assessment Act 1997 (simpler rules for depreciating assets);
(b) Subdivision 328-E of the Income Tax Assessment Act 1997 (simplified trading stock rules);
(c) (Repealed by No 23 of 2012)
(d) sections 82KZM and 82KZMD of the Income Tax Assessment Act 1936 (deducting certain prepaid expenses immediately);
(e) section 170 of the Income Tax Assessment Act 1936 (standard 2-year period for amending assessments).
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