Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 11/18)
Character Range: 2712960–2715601

cannot be chosen if either trust is a discretionary trust.

Beneficiaries' entitlements not discretionary
 (3) The second condition is met at a particular time if, at that time, the manner or extent to which each beneficiary of each trust can benefit from the trust is not capable of being significantly affected by the exercise, or non‑exercise, of a power.
 (4) However, if both trusts are *managed investment trusts, disregard a power if the power's existence at that time does not significantly affect the *market value at that time of each *membership interest in each of the trusts.

126‑235  Exceptions for roll‑over

Foreign trusts
 (1) An exception applies for a *CGT asset if:
 (a) the receiving trust is a *foreign trust for CGT purposes for the income year that includes the transfer time; and
 (b) the roll‑over asset is not *taxable Australian property just after the transfer time.

Public trading trusts
 (2) Another exception applies if either trust is a trust to which section 102S of the Income Tax Assessment Act 1936 applies for the income year that includes the transfer time.

Choices
 (3) Another exception applies if, just after the transfer time:
 (a) a choice (however described) under a provision of a *taxation law is in force for either of the trusts in relation to particular circumstances; and
 (b) the same choice (however described) under that provision for the other trust in relation to those circumstances (a mirror choice) is not also in force; and
 (c) the absence of a mirror choice would or could have an ongoing effect on the calculation of an entity's *net income, or taxable income, for:
 (i) the entity's income year that includes the transfer time; or
 (ii) a later income year.
 (4) However, the exception in subsection (3) does not apply if:
 (a) the other trust makes a mirror choice before the first time after the transfer time when the absence of the mirror choice would affect the calculation of an entity's *net income, or taxable income, for an income year; or
 (b) it would not be reasonable for subsection (3) to apply.
Note: For paragraph (a), the other trust must still be able, under the relevant provision of the taxation law, to make the mirror choice.
 (5) If, just after the transfer time:
 (a) a choice (however described) referred to in paragraph (3)(a) is in force for either of the trusts (the first choice); and
 (b) a provision of a *taxation law:
 (i) prevents the revocation or variation of that choice; or
 (ii) sets out a consequence for an entity if that choice is revoked or varied;
that provision is taken to apply for a mirror choice, in force for the other trust