Section 102UC — Income Tax Assessment Act 1936: Closely held trust

(1) A closely held trust is: (a) a trust where an individual has, or up to 20 individuals have between them, directly or indirectly, and for their own benefit, fixed entitlements to a 75% or greater share of the income, or a 75% or greater share of the capital, of the trust; or (b) a discretionary trust; except where the trust is an excluded trust. Trustees of discretionary trusts treated as individuals (2) For the purposes of paragraph (1)(a), if: (a) a trustee of a discretionary trust holds a fixed entitlement to a share of the income or capital of the trust mentioned in that paragraph directly or indirectly; and (b) no person holds that fixed entitlement directly or indirectly through the discretionary trust; the trustee is taken to hold that fixed entitlement directly or indirectly as an individual and for the individual’s own benefit. Individuals treated as single individual (3) For the purposes of paragraph (1)(a), all of the following are taken to be a single individual: (a) an individual, whether or not the individual holds fixed entitlements directly in the trust mentioned in that paragraph; (b) the individual’s relatives; (c) in relation to any fixed entitlements in respect of which other individuals are nominees of the individual or of the individual’s relatives—those other individuals. Definitions (4) In this section: discretionary trust means a trust that is not a fixed trust within the meaning of section 272-65 in Schedule 2F. excluded trust means: (a) a trust to which paragraph (b), (c) or (d) of the definition of excepted trust in section 272-100 in Schedule 2F applies; or (b) a unit trust whose units are listed on the stock market operated by ASX Limited. fixed entitlement has the meaning given by sections 272-5, 272-10, 272-15 and 272-40 in Schedule 2F. indirectly has the meaning given by section 272-20 in Schedule 2F.