Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

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Division 265 - Overview of Schedule  

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SECTION 265-5   WHAT THIS SCHEDULE IS ABOUT  

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If there is a change in ownership or control of a trust or an abnormal trading in its units, it:

  • • may be prevented from deducting its tax losses of earlier income years; and
  • • may have to work out in a special way its net income and tax loss for the income year; and
  • • may be prevented from deducting certain amounts in respect of debts incurred in the income year or earlier income years.

    • This will not be the case if the trust is an excepted trust. However, if it became one by making a family trust election, a special tax may be payable on certain distributions and other amounts.

    If a trust is involved in a scheme to take advantage of deductions, it may be prevented from making full use of them.

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