Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p22
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 22/79)
Character Range: 2260833–2263492

in other trusts

267‑80  What this Subdivision is about
      If a trust would only avoid the tax consequences of this Division because of interests held by a non‑resident family trust, the Commissioner may require the trust to give certain information about the non‑resident family trust. If it is not given, the trust does not avoid the tax consequences of this Division.

267‑85  Information about family trusts with interests in other trusts

Notice about family trust
 (1) The Commissioner may give the trustee of a trust (the primary trust) a notice in accordance with section 267‑90 if the requirements of subsections (2) to (5) of this section are met.

First requirement
 (2) In its return of income for an income year, the primary trust:
 (a) must have deducted a tax loss from an earlier income year; or
 (b) must not have worked out its net income and tax loss for the income year under Division 268; or
 (c) must have deducted an amount in relation to a debt;
where it would not be allowed to deduct the tax loss or amount in respect of the debt, or would be required to work out its net income and loss under that Division, if it did not meet a condition or conditions as mentioned in section 267‑40 or 267‑70 (the conditions provision).

Second requirement
 (3) The Commissioner must be satisfied that the primary trust would not meet the condition or conditions if one or more trusts were not family trusts.

Third requirement
 (4) When the Commissioner gives the notice, for at least one of the family trusts:
 (a) a trustee of the trust must be a non‑resident; or
 (b) the central management and control of the trust must be outside Australia.

Fourth requirement
 (5) The Commissioner must give the notice before the later of:
 (a) 5 years after the end of the income year to which the return relates; and
 (b) the end of the period during which the trustee of the primary trust is required by section 262A to retain records in relation to that income year.

267‑90  Notices where requirements of section 267‑85 are met

Information required
 (1) The notice that the Commissioner may give if the requirements of subsections 267‑85(2) to (5) are met must require the trustee to give the Commissioner specified information about conferrals of present entitlements to, and distributions of, income and capital, since the beginning of the test period mentioned in the conditions provision, by all of the family trusts meeting the requirements of paragraph 267‑85(4)(a) or (b).

Trustee knowledge
 (2) The information need not be within the knowledge of the trustee at the time the notice is given.

Period for giving information
 (3) The notice