Document ID: chunk:federal_register_of_legislation:C2005C00508:clause:2_52zzb
Version: federal_register_of_legislation:C2005C00508
Segment Type: clause
Provision Reference: sch 2 cl 52ZZB
Character Range: 129470–131444

52ZZB  Designated private trusts

 (1) For the purposes of this Division, a trust is a designated private trust unless:
 (a) all of the following conditions are satisfied:
 (i) the trust is a fixed trust;
 (ii) the units in the trust are held by 50 or more persons;
 (iii) the trust was not created, continued in existence or operated under a scheme that was entered into or carried out for the sole or dominant purpose of enabling any individual or individuals to avoid the application of this Division and/or Part 3.18 of the Social Security Act; or
 (b) the trust is a complying superannuation fund (see subsection (3)); or
 (c) the trust is an excluded trust (see subsection (4)).

 (2) For the purposes of subparagraph (1)(a)(ii), an individual and his or her associates are taken to be one person.

Complying superannuation funds

 (3) For the purposes of this section, a fund is a complying superannuation fund at a particular time if:
 (a) that time occurs during a particular tax year of the fund; and
 (b) under section 45 of the Superannuation Industry (Supervision) Act 1993, the fund is a complying superannuation fund for the purposes of Part IX of the Income Tax Assessment Act 1936 in relation to that tax year.

Excluded trusts

 (4) The Commission may, by writing, declare that each trust included in a specified class of trusts is an excluded trust for the purposes of this section.

 (5) The declaration has effect accordingly.

 (6) An instrument under subsection (4) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

Definitions

 (7) In this section:

fixed trust means a trust where persons have fixed entitlements to all of the income and corpus of the trust.

income means income within the ordinary meaning of that expression.

unit, in relation to a trust, includes a beneficial interest, however described, in the property or income of the trust.

Subdivision D—Controlled private companies