Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 2/4)
Character Range: 6123020–6125720

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

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 *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 *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 residence), the business of the trust, not being incorporated etc.; and
(b) that membership interests in the trust are membership interests in the company (owned by the same persons and in the same way as membership interests in the trust are owned); and
(c) that the company's taxable income is taxed at the same