Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p10
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 10/79)
Character Range: 2233050–2235477

Listed widely held trust may be denied tax loss deduction

Type of trust to which this section applies
 (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 a listed 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 an excepted trust at all times in the test period.
To find out the meaning of listed widely held trust: see section 272‑115.
To find out the meaning of excepted trust: see section 272‑100.

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

Additional restriction on deducting tax loss
 (3) Even if it meets either of the conditions, it still cannot deduct the tax loss, or part of the tax loss, if section 266‑135 (which deals with certain debt deductions) prevents it from doing so.

266‑115  Listed widely held trust may be required to work out its net income and tax loss in a special way
  A trust that:
 (a) was a listed widely held trust at all times in the income year (the test period); and
 (b) was not an excepted trust at all times in the test period;
must work out its net income and tax loss for the income year under Division 268 (How to work out a trust's net income and tax loss for the income year), unless it meets either:
• the condition in subsection 266‑125(1); or
• the condition in subsection 266‑125(2).
Note: See section 415‑25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.

266‑120  Listed widely held trust may be denied debt deduction

Type of trust to which this section applies
 (1) This section applies to a trust that:
 (a) can deduct in the income year an amount:
 (i) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or
 (ii) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt; and
 (b) was a 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;