Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p14
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 14/79)
Character Range: 2242302–2244701

year as occurs after the end of any start‑up period (within the meaning of subsection 272‑120(3)), the trust:
 (i) was at all times an unlisted very widely held trust; or
 (ii) was at all times a wholesale widely held trust; or
 (iii) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or
 (iv) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and
 (b) in the test period, the trust was not at all times an excepted trust.
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.

266‑160  Unlisted very widely held trust or wholesale widely held trust may be denied debt deduction
 (1) If a trust is covered by subsection (2), it cannot deduct in the income year an amount:
 (a) under section 51 or 63, or under section 8‑1 or 25‑35 of the Income Tax Assessment Act 1997, in respect of the writing off of the whole or part of a debt as bad; or
 (b) under subsection 63E(3) or (4) in respect of a debt/equity swap relating to the whole or part of a debt;
unless it meets either:
• the condition in subsection 266‑165(1); or
• the condition in subsection 266‑165(2).
 (2) A trust is covered by this subsection if:
 (a) in the period (the test period) from the later of the end of any start‑up period (within the meaning of subsection 272‑120(3)) and the beginning of:
 (i) if the debt was incurred in an earlier income year—the day on which the debt was incurred; or
 (ii) if the debt was incurred in the income year—the income year;
  until the end of the income year, the trust:
 (iii) was at all times an unlisted very widely held trust; or
 (iv) was at all times a wholesale widely held trust; or
 (v) was at some time an unlisted very widely held trust and, at any time when it was not, was a wholesale widely held trust or a listed widely held trust; or
 (vi) was at some time a wholesale widely held trust and, at any time when it was not, was an unlisted very widely held trust or a listed widely held trust; and
 (b) in the test period, the trust was not at all times an excepted trust.
Note: Subdivisions 709‑D and 719‑I of the Income Tax Assessment Act 1997 also affect