Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998 (17 of 1998)

Schedule 1   Trust losses and other deductions

Part 1   Income Tax Assessment Act 1936

Division 3   Application and transitional provisions

23   Transitional - interposed entity elections

 

(1) Subject to this item and item 23A, an interposed entity election cannot specify a year of income under subsection 272-85(1) of the trust loss etc. Schedule that is before the 1997-98 year of income.

      

(2) If:

(a) a trustee makes a family trust election under subitem 22(3) (as inserted by the Taxation Laws Amendment Act (No. 2) 2000); and

(b) an interposed entity election can be made in accordance with subsection 272-85(2) of the trust loss etc. Schedule in relation to the family trust election specifying a day in the 1998-99 year of income; and

(c) the company, partnership or trust concerned passes the family control test (see section 272-87 of the trust loss etc. Schedule):

(i) if the qualifying year of income specified in the family trust election as mentioned in subitem 22(3) is the 1996-97 year of income - at all times from a day in that year of income until the end of the 1997-98 year of income; or

(ii) if the qualifying year of income specified in the family trust election as mentioned in subitem 22(3) is the 1997-98 year of income - at the end of the 1997-98 year of income;

the interposed entity election can instead specify:

(d) if subparagraph (c)(i) of this subitem applies - the day mentioned in that subparagraph or a later day in the qualifying year of income; or

(e) if subparagraph (c)(ii) applies - a day in the qualifying year of income;

provided the day specified is not before the day on which the family trust election came into force.

      

(3) The election must:

(a) be in writing in a form and manner approved by the Commissioner; and

(b) be made:

(i) if the trustee is required to furnish a return for the 1998-99 year of income - by the time when the trustee furnishes the return; or

(ii) if the trustee is not required to furnish a return for the 1998-99 year of income - before the end of 2 months after the end of that year of income or before the end of such later day as the Commissioner allows.

      

(4) If an interposed entity election is made in accordance with subitem (3) specifying a day in the qualifying year of income:

(a) if the company, the partners or the trustee is required to furnish a return for the 1998-99 year of income - such information about the election as is required by the return must be included in the return; and

(b) if the company, the partners or the trustee is not required to furnish a return for that year of income - the company, the partners or the trustee must, before the end of 2 months after the end of the 1998-99 year of income or before the end of such later day as the Commissioner allows, give the Commissioner such information about the election as the Commissioner, by notice in the Gazette, requires.