Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purpose of the application of this Act in relation to the imposition, assessment and collection of tax in respect of:
(a) the net income of a public trading trust; and
(b) the income or assessable income of a unitholder in a prescribed trust estate;
the following provisions of this section have effect.
Note: Under Subdivision 713 - C of the Income Tax Assessment Act 1997 , this Act applies differently in relation to a public trading trust that chooses to form a consolidated group.
(3) For the purposes of the application of sections 46A and 46B in accordance with subsection (2), the Commissioner may be satisfied, in relation to a unit trust dividend, that a transaction, operation, undertaking, scheme or arrangement was by way of dividend stripping or similar to a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping if the Commissioner would have been satisfied, had the unit trust dividend been a dividend paid by a company, that the transaction, operation, undertaking, scheme or arrangement would have been a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping or, as the case requires, would have been similar to a transaction, operation, undertaking, scheme or arrangement by way of dividend stripping.
(6) For the purposes of the application of the definition of year of income in subsection 6(1), the reference in that definition to a company (except a company in the capacity of a trustee) shall be read as including a reference to a public trading trust or, as the context requires, to the trustee of a public trading trust.
(7) A reference in the definition of person in subsection 6(1) to a company shall be read as including a reference to a public trading trust or, as the context requires, to the trustee of a public trading trust.
(8) The reference in section 158 to the taxable income of a company except income in respect of which it is assessable as trustee shall be read as including a reference to the net income of a public trading trust.
(9) A reference in section 355 - 35 of the Income Tax Assessment Act 1997 to a body corporate is to be read as including a reference to a body corporate acting in its capacity as trustee of a public trading trust.
(11) A reference in subsection 44(1) or section 128B of this Act, in subsection 840 - 805(3) of the Income Tax Assessment Act 1997 , in Subdivision 12 - F in Schedule 1 to the Taxation Administration Act 1953 (except section 12 - 225) or in subsection 12 - 390(10) in that Schedule, to a company or to a company that is a resident shall be read as including a reference to a prescribed trust estate or, as the context requires, to the trustee of a prescribed trust estate.
(12) A reference in the definition of paid in subsection 6(1) or 44(1), or in section 128A or 128B, of this Act, or in Subdivision 12 - F in Schedule 1 to the Taxation Administration Act 1953 (except section 12 - 225), to a dividend shall be read as including a reference to a unit trust dividend.
(13A) Subdivision 12 - F in Schedule 1 to the Taxation Administration Act 1953 applies in respect of units in a prescribed trust estate in the same way as it applies in respect of shares.
(14) A reference in subsection 44(1) to a shareholder in relation to a company shall be read as including a reference to a unitholder in a prescribed trust estate.
(16) A reference in section 6B, Division 6 or subsection 128A(3) or 157(3) of this Act, Division 275 or Subdivision 840 - M of the Income Tax Assessment Act 1997 or Subdivision 12 - H in Schedule 1 to the Taxation Administration Act 1953 to a trust estate or to a trustee shall be read as not including a reference to a trust estate that is a public trading trust or to the trustee of a public trading trust, as the case may be.
(19) For the purposes of subsection 44(1), a unit trust dividend paid by the trustee of a prescribed trust estate out of corpus of the trust estate shall, to the extent to which the unit trust dividend is attributable to profits derived by the trustee, be taken to be paid out of those profits.
(20) For the purposes of section 128B, a unit trust dividend paid to a unitholder in a prescribed trust estate shall be deemed to be income derived by the unitholder at the time at which the unit trust dividend is paid.
(21) Subsections (2), (3), (4) and (20) apply as if references in those subsections to a unit trust dividend included a reference to a non - unit dividend.
(22) For the purposes of subsection 44(1), a non - unit dividend paid by the trustee of a prescribed trust estate out of corpus of the trust estate is taken, to the extent to which the non - unit dividend is attributable to a source in Australia, to be derived from a source in Australia.
(22A) For the purposes of subsection 44(1), a non - unit dividend paid by the trustee of a prescribed trust estate out of corpus of the trust estate is taken, to the extent to which the non - unit dividend is attributable to a source outside Australia, to be derived from a source outside Australia.
(23) If a provision of this Act that applies to a dividend:
(a) is taken under this section to apply to a unit trust dividend; and
(b) applies to a non - share dividend in the same way as it applies to a dividend;
that provision also applies to a non - unit dividend in the same way as it applies to a dividend.
Non - unit equity interest
(24) If a provision of this Act that applies to a share:
(a) is taken under this section to apply to a unit in a prescribed trust estate; and
(b) applies to a non - share equity interest in a company in the same way as it applies to a share;
that provision also applies to a non - unit equity interest in a prescribed trust estate in the same way as it applies to a share.
(25) Subsections (1), (2), (18) and (20) apply as if references in those subsections to a unitholder included a reference to an equity holder who is not a unitholder.
(26) If a provision of this Act that applies to a shareholder:
(a) is taken because of this section to apply to a unitholder in a prescribed trust estate; and
(b) applies to an equity holder in a company who is not a shareholder in the same way as it applies to a shareholder;
that provision also applies to an equity holder in a prescribed trust estate who is not a unitholder in the same way as it applies to a shareholder.
(27) In this section:
"equity holder" in a prescribed trust estate means the holder of an equity interest in the prescribed trust estate.
"equity interest" in a prescribed trust estate means:
(a) a unit in the prescribed trust estate; or
(b) any other interest that would be an equity interest in the prescribed trust estate if references in Division 974 of the Income Tax Assessment Act 1997 to a company included references to a prescribed trust estate or, as the context requires, to the trustee of a prescribed trust estate.
"non-unit dividend" means a unit trust distribution that is not a unit trust dividend.
"non-unit equity interest" in a prescribed trust estate means an equity interest in the prescribed trust estate that is not a unit in the prescribed trust estate.
"unit trust distribution" means a distribution, or an amount credited, that would be a unit trust dividend if references in the definition of unit trust dividend in section 102M to a unitholder were references to an equity holder.