Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p6
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 6/79)
Character Range: 2224001–2226533

doubt, subsections (4) and (5) do not cause the trustee of the fixed trust to commit any offence or be liable to any penalty under Part 4‑25 in Schedule 1 to the Taxation Administration Act 1953 for deducting the amount concerned, or for not working out the trust's net income and tax loss under Division 268, in its return.

Subdivision 266‑C—Effect of change in ownership of unlisted widely held trust

266‑65  What this Subdivision is about

      An unlisted widely held trust:
         • cannot deduct a tax loss from an earlier income year; or
         • has to work out its net income and tax loss for the income year in a special way; or
         • cannot deduct certain amounts in respect of debts;
      unless its ownership has been the same after any abnormal trading in its units and at the end of income years, during a certain period.
                  Note: The exception mentioned in this section applies differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.

266‑70  Diagram giving overview of this Subdivision

266‑75  Unlisted widely held trust may be denied tax loss deduction

Type of trust to which this section applies—case 1
 (1) This section applies to a trust that:
 (a) can in the income year deduct a tax loss from a loss year; and
 (b) was an unlisted widely held trust at all times in the period (the test period) from the beginning of the loss year until the end of the income year; and
 (c) was not a wholesale widely held trust at all times in the test period; and
 (d) was not an unlisted very widely held trust at all times in the test period; and
 (e) was not an excepted trust at all times in the test period.
To find out the meaning of unlisted widely held trust: see section 272‑110.
To find out the meaning of wholesale widely held trust: see section 272‑125.
To find out the meaning of unlisted very widely held trust: see section 272‑120.
To find out the meaning of excepted trust: see section 272‑100.

Type of trust to which this section applies—case 2
 (2) This section also applies to a trust that:
 (a) can in the income year deduct a tax loss from a loss year; and
 (b) was an unlisted widely held trust, other than an unlisted very widely held trust or a wholesale widely held trust, at some time in the period (the test period) from the beginning of the loss year until the end of the income year; and
 (c) was a listed widely held trust at all other times in the test period; and
 (d) was not