Taxation Determination

TD 2000/27W

Income tax: can a company satisfy the requirements of section 80A or section 80E of the Income Tax Assessment Act 1936 if 50% or more of its shares are held by the trustee(s) of a discretionary trust(s)?

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Notice of Withdrawal

Taxation Determination TD 2000/27 is withdrawn with effect from today.

1. TD 2000/27 discusses the application of section 80A or section 80E of the Income Tax Assessment Act 1936 (ITAA 1936), where 50% or more of a company's shares are held by the trustee(s) of a discretionary trust(s).

2. TD 2000/27 relates to section 80A of the ITAA 1936, which has now been replaced by section 165-12 of the Income Tax Assessment Act 1997 (ITAA 1997). It also relates to section 80E of the ITAA 1936, which has since been repealed. Further to this, special tracing rules now exist in Division 165 of the ITAA 1997 in situations where trusts are shareholders.

3. TD 2000/27 has no ongoing relevance, and is therefore withdrawn without replacement.

Commissioner of Taxation
20 December 2016

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Previously issued as Draft TD 96/D17

References

ATO references:
NO 1-9N72KXS

Related Rulings/Determinations:

IT 2340
IT 2361
TR 92/20

Subject References:
carry forward losses
discretionary trusts
continuity of ownership

Legislative References:
80A
80A(1)
80A(2)
80A(3)
80E
160ZZS

Case References:
Franklin's Selfserve Pty Ltd v. FC of T
(1970) 125 CLR 52
70 ATC 4079
(1970) 1 ATR 673

Gartside and Another v. Inland Revenue Commissioners
[1968] 1 All ER 121
Lutheran Church of Australia South Australia District Incorporated v. Farmers' Co-operative Executors and Trustees Limited and Others
(1970) 121 CLR 628
Re Weir's Settlement MacPherson and Another v. Inland Revenue Commissioners
[1970] 1 All ER 297
Case 29/96
96 ATC 330
AAT Case 10,898
(1996) 32 ATR 1259