Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 266 - Income tax consequences for fixed trusts of abnormal trading or change in ownership  

Subdivision 266-E - Effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust  

SECTION 266-150   UNLISTED VERY WIDELY HELD TRUST OR WHOLESALE WIDELY HELD TRUST MAY BE DENIED TAX LOSS DEDUCTION  

266-150(1)    
If a trust is covered by subsection (2), it cannot deduct in the income year a tax loss from a loss year unless it meets either:

• the condition in subsection 266-165(1) ; or

• the condition in subsection 266-165(2) .

266-150(2)    
A trust is covered by this subsection if:

(a) in the period (the test period ) from the later of:

(i) the beginning of the loss year; and

(ii) the end of any start-up period (within the meaning of subsection 272-120 (3));

until the end of the income year, the trust:

(iii) was at all times an unlisted very widely held trust; or

(iv) was at all times a wholesale widely held trust; or

(v) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or

(vi) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and

(b) in the test period, the trust was not at all times an excepted trust.

To find out the meaning of unlisted very widely held trust : see section 272-120 .

To find out the meaning of wholesale widely held trust : see section 272-125 .

To find out the meaning of excepted trust : see section 272-100 .

To find out the meaning of listed widely held trust : see section 272-115 .