Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-D - Tests for finding out whether the company has maintained the same owners  

Rules affecting the operation of the tests

SECTION 165-207   Trustees of family trusts  

165-207(1)    
This section applies if one or more trustees of a *family trust:

(a) owns *shares in a company; or

(b) controls, or is able to control, (whether directly, or indirectly through one or more interposed entities) voting power in a company; or

(c) has a right to receive (whether directly, or *indirectly through one or more interposed entities) a percentage of a *dividend or a distribution of capital of a company.

165-207(2)    
For the purposes of a primary test, a single notional entity that is a person (but is neither a company nor a trustee) is taken to own the *shares beneficially.

Note:

For a primary test, see subsections 165-150(1) , 165-155(1) and 165-160(1) .

165-207(3)    
For the purposes of an alternative test, a single notional entity that is a person (but is neither a company nor a trustee) is taken:

(a) to control, or have the ability to control, the voting power in the company; or

(b) to have the right to receive (whether directly or *indirectly) the percentage of the *dividend or distribution for the entity's own benefit.

Note:

For an alternative test, see subsections 165-150(2) , 165-155(2) and 165-160(2) .

165-207(4)    
If a trustee of the trust is subsequently replaced by another trustee of the trust, the same single notional entity is taken:

(a) to own the *shares beneficially; or

(b) to control, or have the ability to control, the voting power in the company; or

(c) to have the right to receive (whether directly or *indirectly) the percentage of the *dividend or distribution for the entity's own benefit.