INCOME TAX ASSESSMENT ACT 1997 - SECT 275.30 Closely - held restrictions

INCOME TAX ASSESSMENT ACT 1997 - SECT 275.30

  (1)   The trust satisfies the requirements in this subsection in relation to the income year unless, at any time in the income year, any of the following situations exist:

  (a)   for a trust mentioned in subparagraph   275 - 10(3)(d)(i) (trusts with wholesale membership)--10 or fewer persons have a total * MIT participation interest in the trust of 75% or more;

  (b)   if paragraph   (a) does not apply--20 or fewer persons have a total MIT participation interest in the trust of 75% or more;

  (c)   a foreign resident individual has a MIT participation interest in the trust of 10% or more.

  (2)   For the purposes of paragraphs   (1)(a) and (b):

  (a)   if an entity covered by subsection   275 - 20(4) has a * MIT participation interest in the trust--treat that entity as not having a MIT participation interest in the trust; and

  (b)   if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a * chain of trusts:

  (i)   if the entity is covered by subsection   275 - 20(4)--do not treat it as having a MIT participation interest in the trust; and

  (ii)   do not treat a trust in the chain of trusts as having a MIT participation interest in the trust.

  (3)   For the purposes of paragraph   (2)(b), treat an entity covered by subsection   275 - 20(4) as an entity that is not a trust.

  (4)   For the purposes of paragraphs   (1)(a) and (b), apply the rules in subsection   275 - 20(7).