Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

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History

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Division 713 - Rules for particular kinds of entities  

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History

Div 713 inserted by No 117 of 2002, s 3 and Sch 5 item 6, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Subdivision 713-C - Some unit trusts treated like head companies of consolidated groups  

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Subdiv 713-C inserted by No 83 of 2004.

Choice to form a consolidated group

SECTION 713-130  

713-130   Choosing to form a consolidated group  

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A trust may make a choice under section 703-50 (Choice to consolidate a consolidatable group), as if the trust were a company (the assumed company ), but only if:

(a) the assumed company could make the choice, if it beneficially owned the *membership interests in other entities that are legally owned by the trustee; and

(b) the day specified in the choice is the first day of an income year for which the trust is a *public trading trust.

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Note:

Assuming that a trust is a company also involves assuming:

(a) that the company has characteristics of the trust, such as the location of the central management and control (which is relevant to residence), the business of the trust, not being incorporated etc.; and

(b) that membership interests in the trust are membership interests in the company (owned by the same persons and in the same way as membership interests in the trust are owned); and

(c) that the company ' s taxable income is taxed at the same rate as the trust ' s net income.

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History

S 713-130 amended by No 53 of 2016, s 3 and Sch 5 item 55, by omitting " a *corporate unit trust or " before " a *public trading trust " from para (b), applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under s 295-173 .

S 713-130 inserted by No 83 of 2004.

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