Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 180 - Information about family trusts with interests in companies  

Subdivision 180-B - Information relevant to Division 175  

SECTION 180-15   Information about family trusts with interests in companies  

Notice about company

180-15(1)    
The Commissioner may give a company a notice in accordance with section 180-20 if the requirements of this section are met.

Tax detriment under Division 175

180-15(2)    
The Commissioner:

(a) must have been prevented by subsection 175-10(2) or 175-15(2) from disallowing, as a deduction for an income year, the whole or part of a *tax loss from a *loss year; or

(b) must have been prevented by subsection 175-20(2) , 175-25(2) or 175-30(4) from disallowing the whole or part of a deduction for an income year; or

(c) must have been prevented by subsection 175-45(2) or 175-50(2) from disallowing, in working out the *net capital gain or *net capital loss for an income year, the whole or part of a *net capital loss for an earlier income year (or a part of one); or

(d) must have been prevented by subsection 175-60(2) , 175-65(2) or 175-70(4) from disallowing, in working out its net capital gain or net capital loss for an income year, the whole or part of a *capital loss made during the income year; or

(e) must have been prevented by subsection 175-85(2) or 175-90(2) from disallowing, as a deduction for an income year, the whole or part of a debt.

Role of family trust

180-15(3)    
A *family trust must have been:

(a) one of the *continuing shareholders mentioned in subsection 175-10(2) , 175-20(2) , 175-25(2) , 175-45(2) , 175-60(2) , 175-65(2) or 175-85(2) ; or

(b) the person who had the *shareholding interest mentioned in subsection 175-15(2) , 175-30(4) , 175-50(2) , 175-70(4) or 175-90(2) ;

as the case requires.

Foreign resident trust

180-15(4)    
When the Commissioner gives the notice:

(a) a trustee of the *family trust must be a foreign resident; or

(b) the central management and control of the *family trust must be outside Australia.

When notice must be given

180-15(5)    
The Commissioner must give the notice before the later of:

(a) 5 years after the income year mentioned in subsection (2); and

(b) the end of the period during which the company is required by section 262A of the Income Tax Assessment Act 1936 to retain records in relation to that income year.