Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p20
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 20/79)
Character Range: 2256236–2258768

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 sections 267‑40 and 267‑45, the trust would have been entitled to deduct the tax loss.

Subdivision 267‑C—Current year net income and tax loss, and certain debts incurred in current year

267‑55  What this Subdivision is about

      A non‑fixed trust:
         • must 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 income year;
      unless:
         • if applicable, it meets an ownership test relating to fixed entitlements to shares of income and capital; and
         • its control has stayed the same.
                  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.

267‑60  Trust may be required to work out its net income and tax loss in a special way

Type of trust to which this Subdivision applies
  A trust that:
 (a) was a non‑fixed trust at any time in the income year (the test period); and
 (b) 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:
• the condition in subsection 267‑70(2) (if applicable); and
• the condition in section 267‑75.
To find out the meaning of excepted trust: see section 272‑100.
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.

267‑65  Non‑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 (the test period) an amount:
 (i) under section 51 or 63 in respect of the writing off of the whole or part of a debt, incurred in the income year, 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 incurred in the income year; and
 (b) was a non‑fixed trust at any time in the test period; and
 (c) was not an excepted trust at all times in the test period.
Note: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect when a trust that used to be a member of