Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p56
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 56/79)
Character Range: 2342499–2345043

accounting principles, of the unit trust at the time of the redemption or issue;
then the mere fact that the units are redeemable, or that the further units are able to be issued, does not mean that the person's interest, as a unit holder, in the income or capital of the unit trust is defeasible.

Deemed fixed entitlement
 (3) If:
 (a) a beneficiary with an interest in a share of income that the trust derives from time to time, or of the capital of a trust, does not have a fixed entitlement to the share; and
 (b) the Commissioner considers that the beneficiary should be treated as having the fixed entitlement, having regard to:
 (i) the circumstances in which the entitlement is capable of not vesting or the defeasance can happen; and
 (ii) the likelihood of the entitlement not vesting or the defeasance happening; and
 (iii) the nature of the trust;
the beneficiary has the fixed entitlement.

272‑10  Fixed entitlement to share of income or capital of a company
 (1) If a shareholder in a company holds shares carrying the right to receive some or all of the dividends that may be paid by the company, the shareholder has a fixed entitlement to a share of the income of the company equal to the percentage of the total dividends represented by the dividends that the shareholder has a right to receive.
 (2) If a shareholder in a company holds shares carrying the right to receive the whole or part of any distribution of the paid‑up share capital of the company in the event of any return of capital to shareholders, the shareholder has a fixed entitlement to a share of the capital of the company equal to the percentage of the total distribution represented by the amount that the shareholder has a right to receive.

272‑15  Fixed entitlement to share of income or capital of a partnership
 (1) If, under a partnership agreement:
 (a) a partner is entitled to a share of income that the partnership derives from time to time, or of the capital of the partnership; and
 (b) the share is not able to be varied;
the partner has a fixed entitlement to that share of the income or capital.

Deemed fixed entitlement
 (2) If:
 (a) a partner does not have a fixed entitlement to a share of income that the partnership derives from time to time, or of the capital of a partnership, only because the partner's share of the income or capital is able to be varied; and
 (b) the Commissioner considers that the partner should be treated as having the fixed entitlement, having regard to:
 (i) the circumstances in which the share is able to