Private ruling: Trusts
Date of advice: 11 March 2016
Published: May 2016

Ruling: Q1: Are Trusts A, B and C 'fixed trusts' for the purposes of Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes. | Q2: Does the Commissioner exercise his discretion (ie 'consider it fair and reasonable'), pursuant to Schedule 2F to the ITAA 1936? | A2: Yes.

Relevant facts and circumstances: Trust A Trust A is an unlisted unit trust constituted by a deed poll. All of the units, representing 100% of the beneficial interest in Trust A, have been held by the Trustee for Trust B at all times from the settlement of Trust A. Trust B Trust B is a unit trust constituted by a deed poll. All of the units, representing 100% of the beneficial interest in Trust B, have been held by the Trustee for Trust C at all times from the settlement of Trust B. The stapled security holders Company A Company A, through its wholly-owned subsidiary, has held a percentage of the stapled securities. Company A is a company whose ordinary shares are listed on an 'approved stock exchange' as defined in subsection 6(1) of the ITAA 1936 (see Regulation 995-1.05 of, and Schedule 5 to, the Income Tax Assessment Regulations 1997 ). Company B Company B, through its wholly-owned subsidiaries, has held a percentage of the stapled securities. Company B is a company whose shares are listed on an 'approved stock exchange' as defined in subsection 6(1) of the ITAA 1936 (see Regulation 995-1.05 of, and Schedule 5 to, the Income Tax Assessment Regulations 1997 ).

Relevant legislative provisions: Income Tax Assessment Act 1936 Subdivision 269-C of Schedule 2F | Income Tax Assessment Act 1936 Subdivision 272-A of Schedule 2F

Reasons for decision: Summary: Each of the trusts, being Trust A, Trust B and Trust C have met all of the relevant requirements in subsection 272-5(3) of Schedule 2F to the ITAA 1936 to treat the interests of all unit holders in the income and capital of Trusts A, B and C as fixed entitlements. | Summary: Trust A has met all the relevant requirements of subsection 272-30(3) of Schedule 2F to the ITAA 1936.