Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:2_2:p2
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 2/3)
Character Range: 90579–93146

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 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 rate as the trust's net income.

Effects of choice

713‑135  Effects of choice

 (1) If the trust makes the choice, the law (the applied law) described in subsection (2) applies in relation to the trust in a way corresponding to the way in which that law applies to a company. The applied law applies in that way in relation to the trust or trustee (as appropriate):
 (a) with the appropriate modifications (including those described in section 713‑140, so far as they are appropriate); and
 (b) in relation to all times at or after the start of the day specified in the choice; and
 (c) so far as it is relevant to the operation of the applied law in relation to the trust and a time at or after the start of that day—in relation to a time when the trust existed before the start of that day.

Note 1: The application of the applied law in this way affects not only the trust and the trustee but also other entities connected with the trust, such as members of the trust and entities in which the trustee holds membership interests. Some examples of that effect are that:

(a) a consolidated group comes into existence on the day specified in the choice; and

(b) there may be a scrip for scrip roll‑over for an entity exchanging its shares in a company for membership interests in the trust.

Note 2: The application of the applied law in this way involves treatment of characteristics, things and persons relating to the trust corresponding to the treatment by the applied law of analogous characteristics, things and persons relating to a company (as envisaged in the note to section 713‑130). These are some examples of analogous things and analogous persons:

(a) units in the trust and shares in a company;

(b) unitholders in the trust and shareholders in a company;

(c) trust voting interests and voting shares in a company.

 (2) The applied law is:
 (a) this Act (other than this Subdivision); and
 (b) an Act that imposes any impost payable under this Act; and
 (c) the Income Tax Rates Act 1986; and