Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p57
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 57/79)
Character Range: 2344816–2347537

share of the income or capital is able to be varied; and
 (b) the Commissioner considers that the partner should be treated as having the fixed entitlement, having regard to:
 (i) the circumstances in which the share is able to be varied; and
 (ii) the likelihood of the variation happening; and
 (iii) the nature of the partnership;
the partner has the fixed entitlement.

272‑20  Fixed entitlement to share of income or capital held indirectly
  A person holds a fixed entitlement to a share of the income or capital of a company, partnership or trust indirectly if the person holds the entitlement indirectly through fixed entitlements to shares of the income or capital, respectively, of interposed companies, partnerships or trusts.

272‑25  Special cases of fixed entitlements held directly or indirectly

Coverage of section
 (1) This section affects references in this Schedule (other than in subparagraph 269‑75(b)(ii) and section 272‑30) to a person or individual having, directly or indirectly, a fixed entitlement to a share of the income or capital of a company, partnership or trust (the main entity) at a particular time (the test time).
Note: This section will not affect a reference to a person or individual having a fixed entitlement where the phrase "directly or indirectly" is not used.

Certain interposed government bodies and special companies
 (2) If at the test time a government body or a special company has, directly or indirectly, a fixed entitlement to a share of the income or capital of the main entity, subsection (4) or (5) applies.
To find out the meaning of government body and special company: see section 272‑140.

Certain interposed funds
 (3) If:
 (a) a fund is:
 (i) a complying superannuation fund or complying approved deposit fund in relation to the income year in which the test time occurs; or
 (ii) a superannuation fund for foreign residents at the test time; and
 (b) at the test time the fund has, directly or indirectly, a fixed entitlement to a share of the income or capital of the main entity;
subsection (4) or (5) applies.
Note: See subsection 6(1) for the meaning of complying superannuation fund, complying approved deposit fund and superannuation fund for foreign residents.

Government bodies, and funds or companies with more than 50 members
 (4) In the case of a government body, or a fund or company that has more than 50 members:
 (a) except where paragraph (b) applies—the body, fund or company is treated as if it had the fixed entitlement as an individual and for the individual's own benefit; and
 (b) if the reference is in subsection 272‑105(2)—the fixed entitlement is treated as if it were held instead by more than 20 individuals and for their own