Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p40
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 40/79)
Character Range: 2303816–2306501

income;
 (c) the identity of its current business and the identity of its former business;
 (d) the extent to which any changes to its former business result from development or commercialisation of assets, products, processes, services or marketing or organisational methods of the former business.

Exception
 (4) However, the trust does not pass the business continuity test under this section if, before the test time, it:
 (a) began to carry on a business it had not previously carried on; or
 (b) in the course of its business operations, entered into a transaction of a kind that it had not previously entered into;
and did so for the purpose, or for purposes including the purpose, of being taken to have carried on throughout the business continuity test period a business that is similar to the business it carried on immediately before the test time.

Division 270—Schemes to take advantage of deductions

270‑5  What this Division is about
      A trust may be prevented from making any use of deductions, or full use of deductions in an income year, if a scheme to take advantage of the deductions exists.

270‑10  Schemes to take advantage of deductions

Basic case
 (1) The consequences set out in section 270‑15 result if:
 (a) a deduction is allowable to a trust for the income year; and
 (b) under a scheme, the following happen (in any order):
 (i) the trust derives an amount of assessable income (the scheme assessable income) in the income year; and
 (ii) an outsider to the trust (see section 270‑25) directly or indirectly provides a benefit (see section 270‑20) to the trustee, to a beneficiary in the trust or to an associate of the trustee or of a beneficiary; and
Note: The benefit may constitute all or any of the scheme assessable income.
 (iii) the trustee, a beneficiary in the trust or an associate of the trustee or of a beneficiary, directly or indirectly provides a benefit to the outsider to the trust or to an associate of the outsider (other than an associate covered by any of paragraphs 270‑25(1)(a) to (f)); and
Note: The benefit may constitute all or any of the deduction.
 (c) it is reasonable to conclude that:
 (i) the trust derived the scheme assessable income; or
 (ii) the outsider provided the benefit as mentioned in subparagraph (b)(ii); or
 (iii) the trustee, beneficiary or associate provided the benefit as mentioned in subparagraph (b)(iii);
  wholly or partly, but not merely incidentally, because the deduction would be allowable; and
 (d) the trust is not an excepted trust under paragraph 272‑100(b), (c) or (d).

Special case
 (2) If:
 (a) under a scheme, a person who, before the scheme was entered into, was an outsider to