Income Tax Assessment Act 1936
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Hide history noteBasic meaning
269-100(1)
A listed widely held trust passes the business continuity test during a period (the business continuity test period ) in relation to a time (the test time ) if throughout the business continuity test period it carries on the same business as it carried on immediately before the test time.
Relevance of being a trust
269-100(2)
The mere fact of being a trust does not mean that the trust cannot carry on a business.
First exception
269-100(3)
However, the trust does not pass the business continuity test under this section if, at any time during the business continuity test period, it derives assessable income from:
(a) a business of a kind that it did not carry on before the test time; or
(b) a transaction of a kind that it had not entered into in the course of its business operations before the test time.
Second exception
269-100(4)
The trust also does not pass the business continuity test under this section if, before the test time, it:
(a) began to carry on a business it had not previously carried on; or
(b) in the course of its business operations, entered into a transaction of a kind that it had not previously entered into;
and did so for the purpose, or for purposes including the purpose, of being taken to have carried on throughout the business continuity test period the same business as it carried on immediately before the test time.
Third exception
269-100(5)
So far as the test is applied for the purpose of section 266-115 (Listed widely held trust may be required to work out its net income and tax loss in a special way) and section 268-20 (Widely held unit trust ' s income year to be divided into periods), the trust also does not pass the business continuity test under this section if, at any time during the business continuity test period, it incurs expenditure:
(a) in carrying on a business of a kind that it did not carry on before the test time; or
(b) as a result of a transaction of a kind that it had not entered into in the course of its business operations before the test time.
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