Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 (147 of 2005)

Schedule 1   Loss recoupment rules for companies etc.

Income Tax Assessment Act 1997

72   Section 165-207

Repeal the section, substitute:

165-207 Trustees of family trusts

(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.

(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).

(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).

(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.