Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In this Division, unless the contrary intention appears:
"arrangement" means an agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.
"net income" , in relation to a corporate unit trust, means the total assessable income of the corporate unit trust calculated under this Act as if the trustee were a taxpayer in respect of that income and were a resident, less all allowable deductions.
A corporate unit trust may be required to work
out its net income
in a special way by Division 266 or 267 of
Schedule 2F.
"prescribed trust estate" means a trust estate that is, or has been, a corporate unit trust in relation to any year of income.
"property" includes a chose in action and also includes any estate, interest, right or power, whether at law or in equity, in or over property.
"relevant year of income" means the year of income that commenced on 1 July 1980 or a subsequent year of income.
"unit" , in relation to a prescribed trust estate, includes a beneficial interest, however described, in any of the income or property of the trust estate.
"unitholder" , in relation to a prescribed trust estate, means the holder of a unit or units in the prescribed trust estate.
(a) any distribution made by the trustee of a prescribed trust estate, whether in money or in other property, to a unitholder; and
(b) any amount credited by the trustee of a prescribed trust estate to a unitholder as a unitholder;
but does not include:
(c) moneys paid or credited, or property distributed, by the trustee of a prescribed trust estate to the extent to which the moneys are attributable, or the property is attributable, to profits arising during a year of income in relation to which the prescribed trust estate was not a corporate unit trust; or
(d) moneys paid or credited, or property distributed, by the trustee of a prescribed trust estate in respect of the cancellation, extinguishment or redemption of a unit to the extent to which:
(i) the moneys paid or credited or the property distributed represent or represents moneys paid to, or property transferred to, the trustee for the purpose of the creation or issue of that unit; and
(ii) the amount of the moneys paid or credited or the value of the property distributed, as the case may be, does not exceed the amount of the moneys paid to the trustee, or the value, at the time of transfer, of the property transferred to the trustee, for the purpose of the creation or issue of that unit.
(2) A reference in this Division to an associate of a company or of the trustee of a unit trust (which company or trustee is in this subsection referred to as the primary entity ) shall be read as a reference to a company or the trustee of a trust estate (which company or trustee is in this subsection referred to as the associate ) where:
(a) the affairs or operations of the primary entity are, or are able to be, controlled, either directly or indirectly, by the associate;
(b) the affairs or operations of the associate are, or are able to be, controlled, either directly or indirectly, by the primary entity; or
(c) the operations of the primary entity are, or are able to be, controlled, either directly or indirectly, by a person who controls or is able to control, or by persons who control or are able to control, either directly or indirectly, the operations of the associate.
(3) A reference in subsection (2) to the affairs or operations of a primary entity or of an associate, shall, in a case where the primary entity or the associate is a trustee, include a reference to the administration of the trust estate by the trustee.