Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 1/4)
Character Range: 6120516–6123250

7                                                                      A partnership if, when the partnership settled the amount or item of property on the joining entity, a *member of the partnership was an entity covered by item 1, 2, 3, 4 or 6

713‑25  Undistributed, realised profits that accrue to joined group before joining time and could be distributed tax free—step 3 in working out allocable cost amount
 (1) For the purposes of step 3 in the table in section 705‑60, if the joining entity is a trust, the step 3 amount is the sum of the trust's realised profits, to the extent that:
 (a) they accrued to the joined group before the joining time (as defined in subsection 705‑90(7)); and
 (b) as at the joining time, they have not been distributed to *members of the trust; and
 (c) if each of them were distributed as mentioned in paragraphs 705‑90(7)(a) and (b):
 (i) they would be distributed otherwise than in respect of a unit or an interest in the trust; or
 (ii) their non‑assessable parts for the purposes of section 104‑70 would be disregarded in working out whether or not a *capital gain had been made because of CGT event E4;
except to the extent that they recouped losses of any *sort that accrued to the joined group before the joining time (as defined in subsection 705‑90(8)).
Note: If the joining entity, or an entity interposed between the head company and the joining entity, is a non‑fixed trust, this section may involve determining how a power of appointment would have been exercised. Section 713‑50 lists matters to have regard to in determining this.

Trusts not covered
 (2) Subsection (1) does not apply to a trust that is a *corporate tax entity at the joining time.
Note: This excludes corporate unit trusts and public trading trusts, which are covered by the imputation system.

Determining destination of distribution by non‑fixed trust

713‑50  Factors to consider
  In working out, for the purposes of this Part, how much of something a *non‑fixed trust would have distributed to an entity, or in respect of a *membership interest in the trust, have regard to all relevant factors, including:
 (a) the pattern of any previous distributions by the trust; and
 (b) by whom the trust has from time to time been *controlled (for value shifting purposes).

Subdivision 713‑C—Some unit trusts treated like head companies of consolidated groups

Guide to Subdivision 713‑C

713‑120  What this Subdivision is about
      A public trading trust can sometimes choose to form a consolidated group and be treated like a company and head company of the group. The treatment affects the trust, the trustee and other entities connected with the trust (such as members of the trust and entities the trustee