Income Tax Assessment Act 1936
View history note
Hide history noteSubject to Subdivision 272-J , a unit trust is an unlisted very widely held trust if:
(a) it is an unlisted widely held trust; and
(b) it has at least 1,000 unit holders; and
(c) all of its units carry the same rights; and
(d) if its units are redeemable, they are redeemable for a price determined on the basis of its net asset value, according to Australian accounting principles; and
(e) it engages only in qualifying activities (see subsection (2)).
Qualifying activity
272-120(2)
A qualifying activity is an activity that:
(a) is an investment or business activity; and
(b) is conducted in accordance with the trust instrument or deed, and any prospectus, of the trust; and
(c) is conducted at arm ' s length.
Extended status
272-120(3)
If:
(a) at a particular time (the first qualifying time ), a trust for the first time becomes an unlisted very widely held trust; and
(b) at a time (the first unit issue time ) that is not more than 2 years earlier, units in the trust were first issued; and
(c) at no time during the period (the start-up period ) between the first unit issue time and the first qualifying time was there any abnormal trading, of a kind covered by subsection 269-15 (1) or section 269-20 , in the trust ' s units; and
(d) at all times in the part (if any) of the start-up period that occurred more than 90 days after it began, the trust was a widely held unit trust;
the trust is taken to have been an unlisted very widely held trust at all times from the formation of the trust until the end of the start-up period.
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