A New Tax System (Goods and Services Tax) Regulations 1999 (repealed)
For subparagraph 48-10(1)(a)(ii) of the Act, the requirements that must be satisfied for a trust to be a member of a GST group are:
(a) if the GST group consists only of fixed trusts - either the requirements set out in this regulation or the alternative requirements set out in regulation 48-10.03A ; and
(b) in any other case - the requirements set out in this regulation.
The trust must also satisfy other membership requirements set out in section 48-10 of the Act.
One of the following must be satisfied for the trustee of the trust (the candidate trustee ):
(a) the candidate trustee has at least a 90% stake in a company that is a member of the GST group (worked out in accordance with section 190-5 of the Act as if the trustee were a company);
(b) the candidate trustee distributes any income or capital of the trust only to beneficiaries that are permitted beneficiaries (whether or not other distributions could lawfully be made);
(c) the candidate trustee is the sole beneficiary of any distribution of income or capital by the trustee of another trust that is a member of the GST group;
(d) the candidate trustee distributes income or capital of the trust, and the trustee of another trust that is a member of the GST group distributes income or capital of the other trust, only to persons who are all family members of the same individual (whether or not other distributions could lawfully be made).
Distributions to beneficiaries may be direct or indirect (regulation 48-10.01A).
Each of the following is a permitted beneficiary :
(a) a company that is a member of the GST group;
(b) a charitable institution, a trustee of a charitable fund, or a gift-deductible entity;
(c) an individual who is a member of the GST group;
(d) a family member of an individual who is a member of the GST group;
(e) a trustee of a trust that is a member of the GST group.
For a company that is a member of the GST group, each representative of a shareholder of the company is also a permitted beneficiary if:
(a) for a company with 1 shareholder - the beneficiaries of the trust include a representative of the shareholder; and
(b) for a company with more than 1 shareholder - the beneficiaries of the trust include at least 2 beneficiaries who are representatives of different shareholders.
For a partnership that is a member of the GST group, each representative of a partner in the partnership is also a permitted beneficiary if the beneficiaries of the trust include at least 2 beneficiaries who are representatives of different partners.
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