Document ID: chunk:federal_register_of_legislation:C2010C00622:clause:10_23
Version: federal_register_of_legislation:C2010C00622
Segment Type: clause
Provision Reference: sch 10 cl 23
Character Range: 93443–95383

23  After subsection 50H(1)
Insert:

 (1A) If:
 (a) the taxable income of a company is required by subsection 50C(1) to be calculated in accordance with section 50C; and
 (b) the company satisfies the requirements of subsections 50HA(2) and (4);
then:
 (c) for the purpose of applying section 50C to calculate the taxable income, subsection (1) of this section applies as if paragraphs (a), (b) and (c) were omitted and the paragraphs set out in subsection (1B) were substituted; and
 (d) in the substituted paragraphs, the expressions control a non‑fixed trust, directly or indirectly, excepted trust, fixed entitlement, group, more than a 50% stake and non‑fixed trust have the same meanings as in Schedule 2F.

 (1B) For the purposes of paragraph (1A)(c), the substituted paragraphs are as follows:
 (a) immediately after the relevant time, the persons having fixed entitlements to shares of the income or shares of the capital of:
 (i) if the company satisfied the requirements of paragraph 50HA(2)(a)—the company; or
 (ii) if the company satisfied the requirements of paragraph 50HA(2)(b)—the holding entity mentioned in that paragraph;
  or the percentages of those shares, were different from immediately before the relevant time;
 (b) immediately after the relevant time, there were no individuals who had more than a 50% stake in either the income or capital of a non‑fixed trust (other than an excepted trust) that held directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the year of income who, immediately before the relevant time, had more than a 50% stake in the income or capital, respectively, of the non‑fixed trust;
 (c) at the relevant time, a group began to control a non‑fixed trust (other than an excepted trust) that held directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the year of income.