Document ID: chunk:federal_register_of_legislation:C2019C00124:clause:4_3:p6
Version: federal_register_of_legislation:C2019C00124
Segment Type: clause
Provision Reference: sch 4 cl 3 (pt 6/9)
Character Range: 138455–141166

his or her *relatives;
 (iii) each entity acting in the capacity of nominee of an individual mentioned in subparagraph (i) or (ii);
 (b) treat the following entities as together being one entity (the notional entity):
 (i) an entity that is not an individual;
 (ii) each entity acting in the capacity of nominee of the entity mentioned in subparagraph (i).
 (8) For the purposes of subsection (5), if the entity mentioned in subparagraph (7)(b)(i) is an entity covered by subsection (4), treat the notional entity as an entity covered by subsection (4).

275‑25  Widely‑held requirements for registered MIT—special case for entities covered by subsection 275‑20(4)
 (1) The trust satisfies the requirements in this subsection in relation to the income year if:
 (a) one or more entities covered by subsection 275‑20(4) have a total *MIT participation interest in the trust of more than 25% at the time the payment mentioned in paragraph 275‑10(3)(a) is made; and
 (b) at no time in the income year does an entity (other than an entity covered by subsection 275‑20(4)) have a MIT participation interest in the trust of more than 60%.
 (2) For the purposes of paragraphs (1)(a) and (b):
 (a) if:
 (i) an entity covered by subsection 275‑20(4) has a *MIT participation interest (the first interest) in the trust; and
 (ii) another entity covered by subsection 275‑20(4) also has a MIT participation interest (the second interest) in the trust;
  disregard the second interest to the extent that it arises through the existence of the first interest; and
 (b) if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a *chain of trusts—do not treat a trust in the chain of trusts as having a MIT participation interest in the trust.
 (3) For the purposes of paragraph (2)(b), treat an entity covered by subsection 275‑20(4) as an entity that is not a trust.
 (4) For the purposes of paragraphs (1)(a) and (b), apply the rules in subsection 275‑20(7).

275‑30  Closely‑held restrictions
 (1) The trust satisfies the requirements in this subsection in relation to the income year unless, at any time in the income year, any of the following situations exist:
 (a) for a trust mentioned in subparagraph 275‑10(3)(d)(i) (trusts with wholesale membership)—10 or fewer persons have a total *MIT participation interest in the trust of 75% or more;
 (b) if paragraph (a) does not apply—20 or fewer persons have a total MIT participation interest in the trust of 75% or more;
 (c) a foreign resident individual has a MIT participation interest in the trust of 10% or more.
 (2) For the purposes of paragraphs (1)(a) and (b):
 (a) if an entity