Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:2_2:p1
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 1/3)
Character Range: 88055–90815

2  After Subdivision 713‑A
Insert:

Subdivision 713‑C—Some unit trusts treated like head companies of consolidated groups

Guide to Subdivision 713‑C

713‑120  What this Subdivision is about

      A corporate unit trust or public trading trust can sometimes choose to form a consolidated group and be treated like a company and head company of the group. The treatment affects the trust, the trustee and other entities connected with the trust (such as members of the trust and entities the trustee holds membership interests in).

Table of sections

Object of this Subdivision

713‑125 Object of this Subdivision

Choice to form a consolidated group

713‑130 Choosing to form a consolidated group

Effects of choice

713‑135 Effects of choice
713‑140 Modifications of the applied law

[This is the end of the Guide.]

Object of this Subdivision

713‑125  Object of this Subdivision

 (1) The main object of this Subdivision is to provide, by the means described in subsections (2) and (3), for certain unit trusts to be treated like companies, and therefore like *head companies of *consolidated groups, with consequent effects on other entities including:
 (a) the trustees; and
 (b) *members of the trusts; and
 (c) entities the trustees hold *membership interests in.

 (2) The first means is letting a *corporate unit trust, or *public trading trust, that could become the *head company of a *consolidated group if the trust were a company, choose to form such a group (with other entities as *subsidiary members).

 (3) The second means is changing the way in which the law relating to income tax applies on and after the time the choice takes effect, so that law (with some modifications) applies in relation to the trust or the trustee (as appropriate) in a way corresponding to the way in which that law applies in relation to a company.

Note: The law relating to income tax includes legislation relating to associated imposts (such as those connected with the imputation system).

Choice to form a consolidated group

713‑130  Choosing to form a consolidated group

  A trust may make a choice under section 703‑50 (Choice to consolidate a consolidatable group), as if the trust were a company (the assumed company), but only if:
 (a) the assumed company could make the choice, if it beneficially owned the *membership interests in other entities that are legally owned by the trustee; and
 (b) the day specified in the choice is the first day of an income year for which the trust is a *corporate unit trust or a *public trading trust.

Note: Assuming that a trust is a company also involves assuming:

(a) that the company has characteristics of the trust, such as the location of the central management and control (which is relevant to