Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 235.830

  (1)   This section covers a trust if, under an * arrangement:

  (a)   an entity (the investor ) makes a * borrowing, or is provided with credit; and

  (b)   to secure the borrowing or provision of credit, the trustee of the trust acquires an asset or assets (the underlying investment ); and

  (c)   the investor has a beneficial interest in the underlying investment as the sole beneficiary of the trust; and

  (d)   for a provision of credit--the credit was provided to the investor to acquire the asset, or one of the assets, that comprises the underlying investment; and

  (e)   the investor is entitled to the benefit of all income from the underlying investment; and

  (f)   the investor is entitled to acquire legal ownership of the underlying investment on discharging its obligations relating to the borrowing or provision of credit.

Note:   For paragraph   (c), the sole beneficiary of the trust may be 2 or more entities that have an interest in the trust as joint tenants or tenants in common: see subsection   235 - 815(3).

  (2)   However, this section does not cover a trust if the investor is a trustee of a * regulated superannuation fund and the * arrangement includes a * borrowing.

  (3)   This section does not cover a trust if the underlying investment is subject to any charge, security or other encumbrance (apart from any charge securing the obligations relating to the * borrowing or provision of credit).