Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p5
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/19)
Character Range: 11954–14542

the way described in this section; and
 (b) that beneficiary is not a *small business CGT affiliate of any of the trustees of that trust or of a person who has the power of determination mentioned in subparagraph (2)(c)(ii).

Control of discretionary trust

 (5) If the trustee or trustees of a discretionary trust have the power to pay to, or apply for the benefit of, an entity any income or capital of the trust, this section applies to the entity as if the entity beneficially owned interests in any distribution of income or capital of the trust equal to the maximum percentage of the income or capital that the trustee is empowered to pay to, or apply for the benefit of, the entity.

 (6) Subsection (5) does not apply to the entity if the entity is one of these (a public entity):
 (a) a company *shares in which (except shares that carry the right to a fixed rate of *dividend) are listed for quotation in the official list of an *approved stock exchange;
 (b) a *publicly traded unit trust;
 (c) a *mutual insurance company;
 (d) a *mutual affiliate company;
 (e) a company (other than one covered by paragraph (a)) all the shares in which are beneficially owned by one or more of the following:
 (i) a company covered by paragraph (a);
 (ii) a publicly traded unit trust;
 (iii) a mutual insurance company;
 (iv) a mutual affiliate company;
and the trustee or trustees have the power mentioned in that subsection only because another beneficiary of the trust has an interest in the entity.

Indirect control of entity

 (7) This section applies to an entity that directly controls a second entity as if it also controlled any other entity that is directly, or indirectly by any other application or applications of this section, controlled by the second entity.

 (8) However, if an entity (the first entity) controls a public entity, this section does not, merely because of subsection (7), apply to the first entity as if it controlled any other entity that is controlled by the public entity.

Active asset test

152‑35  Active asset test

  A *CGT asset satisfies the active asset test if the asset was an *active asset of yours:
 (a) just before the earlier of:
 (i) the *CGT event; and
 (ii) if the relevant business ceased to be carried on in the last 12 months or any longer period that the Commissioner allows—the cessation of the business; and
 (b) during at least half of the period beginning at the later of:
 (i) when you acquired the asset; and
 (ii) if you have owned the asset for more than 15 years—15 years before the time that applies under paragraph (a);