Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p25
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 25/59)
Character Range: 2594461–2597211

the trust's income; or
 (ii) at least 75% of the trust's capital; or
 (b) if beneficiaries of the trust have a right to vote in respect of activities of the trust—carrying at least 75% of those voting rights.

Possible variation of rights etc.
 (5) This subsection applies to a company or trust if, because of:
 (a) any provision in the entity's constituent document, or in any contract, agreement or instrument:
 (i) authorising the variation or abrogation of rights attaching to any of the *shares, units or other fixed interests in the entity; or
 (ii) relating to the conversion, cancellation, extinguishment or redemption of any of those interests; or
 (b) any contract, *arrangement, option or instrument under which a person has power to acquire any of those interests; or
 (c) any power, authority or discretion in a person in relation to the rights attaching to any of those shares, units or interests;
it is reasonable to conclude that the rights attaching to any of those interests are capable of being varied or abrogated in such a way (even if they are not in fact varied or abrogated in that way) that, directly or indirectly, subsection (3) or (4) would apply to the entity.

Single individual
 (6) For the purposes of subsections (3) and (4), all of the following are taken to be a single individual:
 (a) an individual, whether or not the individual holds *shares, units or other interests in the entity concerned;
 (b) the individual's *associates;
 (c) for any shares, units or interests in respect of which other individuals are nominees of the individual or of the individual's associates—those other individuals.

Subdivision 124‑N—Disposal of assets by a trust to a company

Guide to Subdivision 124‑N

124‑850  What this Subdivision is about
      Entities can choose to obtain a roll‑over if:

                (a) a trust disposes of all of its assets to a company; and
                (b) units and interests in the trust are replaced by shares in the company.
      The roll‑over may also be available for 2 or more trusts disposing of all their assets to a single company.
Note: The effect of the roll‑over may be reversed if the trust does not cease to exist within 6 months: see section 104‑195.

Table of sections

Operative provisions
124‑855 What this Subdivision deals with
124‑860 Requirements for roll‑over
124‑865 Entities both choose the roll‑over
124‑870 Roll‑over for owner of units or interests in a trust
124‑875 Effect on the transferor and transferee

Operative provisions

124‑855  What this Subdivision deals with
 (1) A roll‑over may be available for a restructuring (a trust restructure) if:
 (a) a trust, or 2 or more trusts, (the transferor) *dispose of all of their *CGT assets to a company limited