Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p11
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 11/79)
Character Range: 2235266–2237791

listed widely held trust at all times in the period (the test period):
 (i) if the debt was incurred in an earlier income year—beginning on the day the debt was incurred and ending at the end of the income year; or
 (ii) if the debt was incurred in the income year—consisting of the income year; and
 (c) was not an excepted trust at all times in the test period.
Note: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of a consolidated group or MEC group may deduct a debt that used to be owed to a member of the group and that the trust writes off as bad.

Condition for deducting amount
 (2) The trust cannot deduct the amount unless it meets either:
• the condition in subsection 266‑125(1); or
• the condition in subsection 266‑125(2).

266‑125  There must be no abnormal trading (subject to 50% stake or business continuity exceptions)
 (1) There must be no abnormal trading in the trust's units during the test period.
To find out the meaning of abnormal trading: see Subdivision 269‑B.
 (2) If there is abnormal trading on one or more occasions, then either:
 (a) for each abnormal trading, the trust must pass the 50% stake test in respect of the following times:
 (i) the beginning of the test period;
 (ii) immediately after the abnormal trading; or
 (b) if it does not, at all times after the first or only abnormal trading in respect of which the requirement in paragraph (a) is not satisfied and before the end of the test period, the trust must pass the business continuity test in relation to the time immediately before that abnormal trading.
To find out whether the trust passes the 50% stake test: see Subdivision 269‑C.
To find out whether the trust passes the business continuity test: see Subdivision 269‑F.

266‑130  Deducting part of a tax loss
 (1) If section 266‑110 prevents the trust from deducting a tax loss, it can deduct the part of the tax loss that is attributable to a part of the loss year.
 (2) However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of section 266‑125, the trust would have been entitled to deduct the tax loss.
 (3) Also, the trust cannot deduct the part of the tax loss, or some of it, if section 266‑135 (which deals with certain debt deductions) prevents it from doing so.

266‑135  Listed widely held unit trust may be denied tax loss deduction otherwise allowable

Section applies after sections 266‑110 and