Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1936 - SECT 102M

Interpretation

                   In this Division, unless the contrary intention appears:

"arrangement " has the same meaning as in the Income Tax Assessment Act 1997 .

"eligible investment business " means one or more of:

                     (a)  investing in land for the purpose, or primarily for the purpose, of deriving rent; or

                     (b)  investing or trading in any or all of the following:

                              (i)  secured or unsecured loans (including deposits with a bank or other financial institution);

                             (ii)  bonds, debentures, stock or other securities;

                            (iii)  shares in a company, including shares in a foreign hybrid company (as defined in the Income Tax Assessment Act 1997 );

                            (iv)  units in a unit trust;

                             (v)  futures contracts;

                            (vi)  forward contracts;

                           (vii)  interest rate swap contracts;

                          (viii)  currency swap contracts;

                            (ix)  forward exchange rate contracts;

                             (x)  forward interest rate contracts;

                            (xi)  life assurance policies;

                           (xii)  a right or option in respect of such a loan, security, share, unit, contract or policy;

                          (xiii)  any similar financial instruments; or

                     (c)  investing or trading in financial instruments (not covered by paragraph (b)) that arise under financial arrangements, other than arrangements excepted by section 102MA.

"excluded rent " means rent worked out by reference to the profits or receipts of an entity that uses any of the relevant land under an arrangement that is designed to result in the transfer of all, or substantially all, of what would otherwise be the profits of the entity to another party to the arrangement.

"financial arrangement " has the same meaning as in the Income Tax Assessment Act 1997 .

"land " includes an interest in land and fixtures on land.

"net income " , in relation to a public trading trust, means the total assessable income of the 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 public trading trust may be required to work out its net income
in a special way by Division 266 or 267 in Schedule 2F.

"prescribed trust estate " means a trust estate that is, or has been, a public trading 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 1985 or a subsequent year of income.

"trading business " means a business that does not consist wholly of eligible investment business.

"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.

"unit trust dividend " means:

                     (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)  money paid or credited, or property distributed, by the trustee of a prescribed trust estate to the extent to which the money or property is attributable to profits arising during a year of income in relation to which the prescribed trust estate was not a public trading trust; or

                     (d)  money 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 money paid or credited or the property distributed represents money 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 money paid or credited or the value of the property distributed, as the case may be, does not exceed the amount of the money 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.



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