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-C - Effect of change in ownership of unlisted widely held trust  

SECTION 266-75   UNLISTED WIDELY HELD TRUST MAY BE DENIED TAX LOSS DEDUCTION  

Type of trust to which this section applies - case 1

266-75(1)    
This section applies to a trust that:

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

(b) was an unlisted widely held 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 wholesale widely held trust at all times in the test period; and

(d) was not an unlisted very widely held trust at all times in the test period; and

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

To find out the meaning of unlisted widely held trust : see section 272-110 .

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

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

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

Type of trust to which this section applies - case 2

266-75(2)    
This section also applies to a trust that:

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

(b) was an unlisted widely held trust, other than an unlisted very widely held trust or a wholesale widely held trust, at some time in the period (the test period ) from the beginning of the loss year until the end of the income year; and

(c) was a listed widely held trust at all other 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 listed widely held trust : see section 272-115 .

Condition for deducting tax loss

266-75(3)    
The trust cannot deduct the tax loss unless it meets the condition in section 266-90 .