Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 275.25

  (1)   The trust satisfies the requirements in this subsection in relation to the income year if:

  (a)   one or more entities covered by subsection   275 - 20(4) have a total * MIT participation interest in the trust of more than 25% at the time the payment mentioned in paragraph   275 - 10(3)(a) is made; and

  (b)   at no time in the income year does an entity (other than an entity covered by subsection   275 - 20(4)) have a MIT participation interest in the trust of more than 60%.

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

  (a)   if:

  (i)   an entity covered by subsection   275 - 20(4) has a * MIT participation interest (the first interest ) in the trust; and

  (ii)   another entity covered by subsection   275 - 20(4) also has a MIT participation interest (the second interest ) in the trust;

    disregard the second interest to the extent that it arises through the existence of the first interest; 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--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).