INCOME TAX ASSESSMENT ACT 1997 - SECT 713.130 Choosing to form a consolidated group

INCOME TAX ASSESSMENT ACT 1997 - SECT 713.130

    A trust may make a choice under section   703 - 50 (Choice to consolidate a consolidatable group), as if the trust were a company (the assumed company ), but only if:

  (a)   the assumed company could make the choice, if it beneficially owned the * membership interests in other entities that are legally owned by the trustee; and

  (b)   the day specified in the choice is the first day of an income year for which the trust is a * public trading trust.

Note:   Assuming that a trust is a company also involves assuming:

(a)   that the company has characteristics of the trust, such as the location of the central management and control (which is relevant to residence), the business of the trust, not being incorporated etc.; and

(b)   that membership interests in the trust are membership interests in the company (owned by the same persons and in the same way as membership interests in the trust are owned); and

(c)   that the company's taxable income is taxed at the same rate as the trust's net income.