Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p9
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 9/79)
Character Range: 2230636–2233259

off as bad.

266‑90  If abnormal trading or end of income year, trust must pass the 50% stake test
 (1) If this section is being applied for the purposes of section 266‑75 or 266‑85, on each occasion when either of the following events occurs:
 (a) an abnormal trading in the trust's units occurs during the test period;
 (b) an income year of the trust ends during the test period (including at the end of the test period);
the trust must pass the 50% stake test in respect of the following times:
 (c) the beginning of the test period;
 (d) immediately after the event occurs.
To find out whether the trust passes the 50% stake test: see Subdivision 269‑C.
 (2) If this section is being applied for the purposes of section 266‑80, on each occasion when an abnormal trading in the trust's units occurs during the test period, the trust must pass the 50% stake test in respect of the following times:
 (a) the beginning of the test period; and
 (b) immediately after the abnormal trading occurs.

266‑95  Deducting part of a tax loss
 (1) If section 266‑75 prevents the trust from deducting a tax loss, it can deduct the part of the tax loss that is attributable to a part of the loss year.
 (2) However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of section 266‑90, the trust would have been entitled to deduct the tax loss.

Subdivision 266‑D—Effect of abnormal trading on listed widely held trust

266‑100  What this Subdivision is about

      A listed widely held trust:
         • cannot deduct a tax loss from an earlier income year; or
         • has to work out its net income and tax loss for the income year in a special way; or
         • cannot deduct certain amounts in respect of debts incurred in the same year or earlier income years;
      unless either:
         • there was no abnormal trading; or
         • there was abnormal trading, but the trust's ownership and business did not change.
      Also, it may still be prevented from deducting the tax loss to the extent that it is attributable to certain debt deductions.
                  Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415‑25 and 415‑30 of the Income Tax Assessment Act 1997.

266‑105  Diagram giving overview of this Subdivision

266‑110  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;