Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p6
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 6/9)
Character Range: 535389–538110

or trust, that the notional holder had the right to receive at the end of the *starting day (as determined under subsection 149‑60(6));

the notional holder is taken to have the right to receive the lower percentage of the distributions of capital, dividends or other income at that time.

149‑135  Income and capital unitholding of less than 1%

Meaning of income unitholding of less than 1%

 (1) If all the units in a unit trust of which an entity is the registered holder at a particular time carry (between them) the right to receive less than 1% of any distribution of income of the trust, those units constitute an income unitholding of less than 1% in the trust at that time.

Meaning of capital unitholding of less than 1%

 (2) If all the units in a unit trust of which an entity is the registered holder at a particular time carry (between them) the right to receive less than 1% of any distribution of capital of the trust, those units constitute a capital unitholding of less than 1% in the trust at that time.

When the rules in this Subdivision do not apply

149‑140  If company or unit trust would not otherwise pass the continuity of ownership test

 (1) This Subdivision does not apply for the purposes of a determination under section 149‑55 if the Commissioner decides that it is reasonable to assume that at the end of the *test day               `*majority underlying interests in the asset were not had by *ultimate owners who had *majority underlying interests in the asset at the end of the *starting day.

 (2) If the Commissioner so decides after the head entity has already made the determination on the basis of a rule in this Subdivision, the determination is taken never to have been made.

Note: The head entity may still have time to make a fresh determination, or the Commissioner may extend the time for making one: see subsection 149‑55(1).

Subdivision 149‑E—How to treat certain interposed funds, companies and government bodies

Guide to Subdivision 149‑E

149‑145  What this Subdivision is about

      If the entity is a company covered by paragraph 149‑50(1)(a), (e) or (f) or a publicly traded unit trust, this Subdivision has rules that make it easier for it to determine who had underlying interests in the asset.

      The entity does not have to trace through complying superannuation funds, complying approved deposit funds, companies of certain kinds, or government bodies, that are interposed between the entity and the ultimate owners who have underlying interests in the asset.

Table of sections

Special tracing rules for certain companies and publicly traded unit trusts

149‑150 When certain funds, companies or government bodies are taken to