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-E - Effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust  

SECTION 266-155   UNLISTED VERY WIDELY HELD TRUST OR WHOLESALE WIDELY HELD TRUST MAY BE REQUIRED TO WORK OUT ITS NET INCOME AND TAX LOSS IN A SPECIAL WAY  

266-155(1)    
If a trust is covered by subsection (2), it must work out its net income and tax loss for the income year under Division 268 (How to work out a trust ' s net income and tax loss for the income year), unless it meets either:

• the condition in subsection 266-165(1) ; or

• the condition in subsection 266-165(2) .

266-155(2)    
A trust is covered by this subsection if:

(a) in the period (the test period ) consisting of so much of the income year as occurs after the end of any start-up period (within the meaning of subsection 272-120 (3)), the trust:

(i) was at all times an unlisted very widely held trust; or

(ii) was at all times a wholesale widely held trust; or

(iii) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or

(iv) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and

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

Note:

See section 415-25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.