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-B - Effect of change in ownership of fixed trust  

SECTION 266-25   FIXED TRUST MAY BE DENIED TAX LOSS DEDUCTION  

Type of trust to which this section applies

266-25(1)    
This section applies to a trust that:

(a) can deduct in the income year a tax loss from a loss year; and

(b) was a fixed trust at all times in the period (the test period ) from the beginning of the loss year until the end of the income year; and

(c) was not a widely held unit trust at all times in the test period; and

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

To find out the meaning of fixed trust : see section 272-65 .

To find out the meaning of widely held unit trust : see section 272-105 .

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

Condition for deducting tax loss

266-25(2)    
The trust cannot deduct the tax loss unless it meets either:

• the condition in section 266-40 ; or

• the conditions in section 266-45 .