Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/80)
Character Range: 4346585–4349061

under section 275‑115 covering the entity is in force for the income year in which the time occurs.
 (6) The modifications are as follows:
 (a) section 8‑1 (about amounts you can deduct) does not apply to the *acquisition;
 (b) Division 70 (about trading stock) does not apply in relation to the asset in respect of:
 (i) the income year in which the time occurs; and
 (ii) any later income year in relation to which the entity is a *managed investment trust and throughout which the entity meets the requirement in section 275‑110.

275‑105  Covered assets
 (1) An asset is covered by this section if it is any of the following:
 (a) a *share in a company (including a share in a *foreign hybrid company);
 (b) a *non‑share equity interest in a company;
 (c) a unit in a unit trust;
 (d) land (including an interest in land);
 (e) a right or option to *acquire or *dispose of an asset of a kind mentioned in paragraph (a), (b), (c) or (d).
 (2) However, the asset is not covered by this section if it is any of the following:
 (a) a *Division 230 financial arrangement;
 (b) a *debt interest.

275‑110  MIT not to be trading trust
 (1) An entity that is a trust meets the requirement in this section at a time if the entity is not, at that time, a trading trust for the purposes of Division 6C of Part III of the Income Tax Assessment Act 1936 in relation to that income year.
 (2) If, apart from a particular circumstance, a trust would meet the requirement in subsection (1) at a time, the trust also meets the requirement in this section at a time if:
 (a) the circumstance is temporary; and
 (b) the circumstance arose outside the control of the trustee of the trust; and
 (c) the trustee of the trust is not liable to pay income tax on the net income of the trust under section 102S of the Income Tax Assessment Act 1936 for the income year in which the time occurs; and
 (d) it is fair and reasonable to treat the trust as meeting the requirement in this section at that time, having regard to the following matters:
 (i) the matters in paragraphs (a), (b) and (c);
 (ii) the nature of the circumstance;
 (iii) the actions (if any) taken by the trustee of the trust to address or remove the circumstance, and the speed with which such actions are taken;
 (iv) the extent to which treating the trust as meeting the requirement in this section at that time would increase or reduce the amount of tax otherwise payable by the trustee, the beneficiaries of the trust or any