Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 2/79)
Character Range: 2214825–2217221

designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.

266‑20  Diagram giving overview of this Subdivision

266‑25  Fixed 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 deduct in the income year a tax loss from a loss year; and
 (b) was a fixed 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 widely held unit trust at all times in the test period; and
 (d) was not an excepted trust at all times in the test period.
To find out the meaning of fixed trust: see section 272‑65.
To find out the meaning of widely held unit trust: see section 272‑105.
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 section 266‑40; or
• the conditions in section 266‑45.

266‑30  Fixed trust may be required to work out its net income and tax loss in a special way
  A trust that:
 (a) was a fixed trust at all times in the income year (the test period); and
 (b) was not a widely held unit trust at all times in the test period; and
 (c) 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 section 266‑40; or
• the conditions in section 266‑45.
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.

266‑35  Fixed 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 fixed 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