Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 272 - Interpretation  

Subdivision 272-I - Wholesale widely held trust  

SECTION 272-125   WHOLESALE WIDELY HELD TRUST  

272-125(1)    
Subject to Subdivision 272-J , a unit trust is a wholesale widely held trust at a particular time (the test time ) if:

(a) it is an unlisted widely held trust at the test time; and

(b) it is not an unlisted very widely held trust at the test time; and

(c) at least 75% of its units are held at the test time by one or more qualifying holders (see subsection (2)); and

(d) at the test time, all of its units carry the same rights; and

(e) if at the test time its units are redeemable, they are redeemable for a price determined on the basis of its net asset value, according to Australian accounting principles; and

(f) the amount subscribed for units in the trust by each person to whom units have been issued was at least $500,000; and

(g) at the test time, the unit trust engages only in qualifying activities (see subsection (3)).

Qualifying holder

272-125(2)    
Each of the following is a qualifying holder :

(a) a listed widely held trust;

(b) an unlisted very widely held trust;

(c) a life assurance company;

(d) (Repealed by No 101 of 2004)

(e) a fund that is a complying approved deposit fund in relation to the year of income in which the test time occurs;

(f) a fund that is a complying superannuation fund in relation to the year of income in which the test time occurs;

(g) a trust that is a pooled superannuation trust in relation to the year of income in which the test time occurs.

Qualifying activity

272-125(3)    
A qualifying activity is an activity that:

(a) is an investment or business activity; and

(b) is conducted in accordance with the trust instrument or deed, and any prospectus, of the trust; and

(c) is conducted at arm ' s length.