Private ruling: Application of the Same Business Test
Published: January 2015
Ruling period: Income years 20xx - 20yy
Date scheme commenced: When the change to the structure in which a portion of its investments are held happens.

Ruling: Q1: Will the Trust continue to satisfy the same business test under paragraph 266-125(2)(b) and section 269-100 of Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936) following a change to the structure in which a portion of its investments are held? | A1: Yes

Relevant facts and circumstances: Trust is a listed widely held trust. Trust experienced abnormal trading in the Trust's units (as defined in Subdivision 269-B of Schedule 2F to the ITAA 1936), and as a consequence does not pass the '50% stake test' (as defined in Subdivision 269-C of Schedule 2F to the ITAA 1936). Subsequent to the abnormal trading in Trust units, Trust changed the structure in which a portion of its investments were held.

Relevant legislative provisions: Paragraph 266-125(2)(b) of Schedule 2F to the Income Tax Assessment Act 1936 Section 269-100 of Schedule 2F to the Income Tax Assessment Act 1936

Reasons for decision: Summary: After considering the relevant facts, the Commissioner has decided that the change in the structure in which Trust held its investments does not cause Trust to fail the same business test (as defined in subdivision 269-F of Schedule 2F to the ITAA 1936).