Document ID: chunk:federal_register_of_legislation:C2016C00501:clause:5_4:p5
Version: federal_register_of_legislation:C2016C00501
Segment Type: clause
Provision Reference: sch 5 cl 4 (pt 5/7)
Character Range: 27557–30256

of the trust (other than an individual who became a member of the trust because a financial product or a financial service was provided to, or acquired by, the individual as a wholesale client (within the meaning of section 761G of the Corporations Act 2001));
 (c) the rules in subsection (6).
 (5) For the purposes of paragraph (4)(a), treat an entity covered by subsection (3) as an entity that is not a trust.
 (6) The rules are as follows:
 (a) treat the following entities as together being one entity:
 (i) an individual;
 (ii) each of his or her relatives;
 (iii) each entity acting in the capacity of nominee of an individual mentioned in subparagraph (i) or (ii);
 (b) treat the following entities as together being one entity (the notional entity):
 (i) an entity that is not an individual;
 (ii) each entity acting in the capacity of nominee of the entity mentioned in subparagraph (i).
 (7) For the purposes of subsection (4), if the entity mentioned in subparagraph (6)(b)(i) is an entity covered by subsection (3), treat the notional entity as an entity covered by subsection (3).

12‑402A  Widely‑held requirements for registered MIT—special case for entities covered by subsection 12‑402(3)
 (1) The trust satisfies the requirements in this subsection in relation to the income year if:
 (a) one or more entities covered by subsection 12‑402(3) have a total *MIT participation interest in the trust of more than 25% at the time the payment mentioned in paragraph 12‑400(1)(a) is made; and
 (b) at no time in the income year does an entity (other than an entity covered by subsection 12‑402(3)) have a MIT participation interest in the trust of more than 60%.
 (2) For the purposes of paragraphs (1)(a) and (b):
 (a) if:
 (i) an entity covered by subsection 12‑402(3) has a *MIT participation interest (the first interest) in the trust; and
 (ii) another entity covered by subsection 12‑402(3) also has a MIT participation interest (the second interest) in the trust;
  disregard the second interest to the extent that it arises through the existence of the first interest; and
 (b) if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a *chain of trusts—do not treat a trust in the chain of trusts as having a MIT participation interest in the trust.
 (3) For the purposes of paragraph (2)(b), treat an entity covered by subsection 12‑402(3) as an entity that is not a trust.
 (4) For the purposes of paragraphs (1)(a) and (b), apply the rules in subsection 12‑402(6).

12‑402B  Closely‑held restrictions
 (1) The trust satisfies the requirements in this subsection in relation to the income year