Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For each * sub - fund of a * CCIV, the business, * assets and * liabilities of the sub - fund are taken to constitute the trust estate of a separate trust, of which the CCIV is the trustee and the * members of the sub - fund are the beneficiaries.
(2) A trust that is taken to exist because of the application of subsection (1) to a * sub - fund of a * CCIV is a CCIV sub - fund trust .
Note: The combined effect of this section and subsections 960 - 100(2) and (3) is that a CCIV is a different entity in its capacity as trustee of each of its CCIV sub - fund trusts.
Because of subsection 195 - 105(1), the tax treatment of the CCIV in those capacities excludes the tax treatment that would otherwise apply to the CCIV as a company. Also, the tax treatment of members of the CCIV is based on them being treated as beneficiaries of their respective CCIV sub - fund trusts, to the exclusion of the tax treatment that would otherwise apply to them as members of a company.
Example 1: CCIV A has only one sub - fund (sub - fund A). CCIV B has only one sub - fund (sub - fund B).
CCIV A holds shares in CCIV B. The shares are referable to sub - fund B. They are assets of sub - fund A.
In its capacity as trustee of the CCIV sub - fund trust for sub - fund A, CCIV A is a beneficiary of the CCIV sub - fund trust for sub - fund B.
Example 2: A CCIV has 2 sub - funds: sub - fund A and sub - fund B.
As permitted by section 1230Q of the Corporations Act 2001 , the CCIV acquires, in respect of sub - fund A, shares that are referable to sub - fund B. The shares are assets of sub - fund A.
In its capacity as trustee of the CCIV sub - fund trust for sub - fund A, the CCIV is a beneficiary of the CCIV sub - fund trust for sub - fund B.