Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS

Division 165 - Income tax consequences of changing ownership or control of a company

Subdivision 165-D - Tests for finding out whether the company has maintained the same owners

Rules affecting the operation of the tests

SECTION 165-207 Trustees of family trusts

View history reference

165-207(1)
This section applies if one or more trustees of a *family trust:

(a) owns *shares in a company; or

(b) controls, or is able to control, (whether directly, or indirectly through one or more interposed entities) voting power in a company; or

(c) has a right to receive (whether directly, or *indirectly through one or more interposed entities) a percentage of a *dividend or a distribution of capital of a company.

165-207(2)
For the purposes of a primary test, a single notional entity that is a person (but is neither a company nor a trustee) is taken to own the *shares beneficially.

Note:

For a primary test, see subsections 165-150(1) , 165-155(1) and 165-160(1) .

165-207(3)
For the purposes of an alternative test, a single notional entity that is a person (but is neither a company nor a trustee) is taken:

(a) to control, or have the ability to control, the voting power in the company; or

(b) to have the right to receive (whether directly or *indirectly) the percentage of the *dividend or distribution for the entity's own benefit.

Note:

For an alternative test, see subsections 165-150(2) , 165-155(2) and 165-160(2) .

165-207(4)
If a trustee of the trust is subsequently replaced by another trustee of the trust, the same single notional entity is taken:

(a) to own the *shares beneficially; or

(b) to control, or have the ability to control, the voting power in the company; or

(c) to have the right to receive (whether directly or *indirectly) the percentage of the *dividend or distribution for the entity's own benefit.

View history note

History

S 165-207 substituted by No 147 of 2005, s 3 and Sch 1 item 72, applicable in accordance with subitem 17(3) of Schedule 10 to the Taxation Laws Amendment Act (No 2) 2000 [ see note for Act No 58 of 2000 reproduced below]. S 165-207 formerly read:

Trustee of family trust treated as beneficial owner
165-207(1)
For the purposes of a primary test, the trustee of a *family trust who owns *shares in a company is taken to own the shares beneficially.

165-207(2)
For the purposes of an alternative test, the trustee of a *family trust who has the right to receive (whether directly, or indirectly through one or more interposed entities) a percentage of a *dividend or a distribution of capital is taken:

(a) to have the right to receive the percentage for the trustees own benefit; and

(b) if the trustee is a company - not to be a company.

S 165-207 inserted by No 58 of 2000.

Act No 58 of 2000, Sch 10, contained the following application provision:

17(3)
The amendments made by items 12 and 13 apply:

(a) so far as the amendments affect Subdivision 165-A (including as modified by Subdivision 166-A) of the Income Tax Assessment Act 1997 - where the loss year mentioned in that Subdivision is the 1996-97 income year or any later income year and the income year mentioned in that Subdivision is the 1997-98 income year or any later income year; and

(b) so far as the amendments affect Subdivision 165-B (including as modified by Subdivision 166-B) of the Income Tax Assessment Act 1997 - where the income year mentioned in that Subdivision is the 1997-98 income year or any later income year; and

(c) so far as the amendments affect Subdivision 165-CA of the Income Tax Assessment Act 1997 - where the earlier income year mentioned in that Subdivision is the 1996-97 income year or any later income year and the current income year mentioned in that Subdivision is the 1998-99 income year or any later income year; and

(d) so far as the amendments affect Subdivision 165-CB (including as modified by Subdivision 166-B) of the Income Tax Assessment Act 1997 - where the income year mentioned in that Subdivision is the 1998-99 income year or any later income year; and

(e) so far as the amendments affect Subdivision 165-C (including as modified by Subdivision 166-C) of the Income Tax Assessment Act 1997 - where the debt mentioned in that Subdivision was incurred in the 1996-97 income year or any later income year and the current year mentioned in that Subdivision is the 1998-99 income year or any later income year.

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