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Edited version of your written advice
Authorisation Number: 1012976952842
Date of advice: 11 March 2016
Ruling
Subject: Trusts
Question 1
Are Trusts A, B and C 'fixed trusts' for the purposes of Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes.
Question 2
Does the Commissioner exercise his discretion (ie 'consider it fair and reasonable'), pursuant to Schedule 2F to the ITAA 1936?
Answer
Yes.
Relevant facts and circumstances
Trust A
Trust A is an unlisted unit trust constituted by a deed poll. All of the units, representing 100% of the beneficial interest in Trust A, have been held by the Trustee for Trust B at all times from the settlement of Trust A.
Trust B
Trust B is a unit trust constituted by a deed poll. All of the units, representing 100% of the beneficial interest in Trust B, have been held by the Trustee for Trust C at all times from the settlement of Trust B.
The stapled security holders
Company A
Company A, through its wholly-owned subsidiary, has held a percentage of the stapled securities.
Company A is a company whose ordinary shares are listed on an 'approved stock exchange' as defined in subsection 6(1) of the ITAA 1936 (see Regulation 995-1.05 of, and Schedule 5 to, the Income Tax Assessment Regulations 1997).
Company B
Company B, through its wholly-owned subsidiaries, has held a percentage of the stapled securities.
Company B is a company whose shares are listed on an 'approved stock exchange' as defined in subsection 6(1) of the ITAA 1936 (see Regulation 995-1.05 of, and Schedule 5 to, the Income Tax Assessment Regulations 1997).
Relevant legislative provisions
Income Tax Assessment Act 1936 Subdivision 269-C of Schedule 2F
Income Tax Assessment Act 1936 Subdivision 272-A of Schedule 2F
Reasons for decision
Question 1
Summary
Each of the trusts, being Trust A, Trust B and Trust C have met all of the relevant requirements in subsection 272-5(3) of Schedule 2F to the ITAA 1936 to treat the interests of all unit holders in the income and capital of Trusts A, B and C as fixed entitlements.
Question 2
Summary
Trust A has met all the relevant requirements of subsection 272-30(3) of Schedule 2F to the ITAA 1936.