INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 7AA - Franking rebates for certain exempt institutions  

SECTION 160ARDAE   TREATMENT OF BENEFITS PROVIDED BY AN EXEMPT INSTITUTION TO A CONTROLLER  

160ARDAE(1)   [Application]  

A benefit given by an exempt institution to a controller of the institution, or an associate of a controller of the institution, is dealt with under this section if:

(a) the controller or associate:

(i) pays a dividend to the institution; or

(ii) is trustee of the trust in relation to which a notional trust amount of the institution arises; and

(b) the benefit is, or was, given to the controller or associate at any time during the period that starts 3 years before, and ends 3 years after, the dividend is paid or the notional trust amount arises.

160ARDAE(2)   [Related transaction]  

The controller or associate is taken, for the purposes of subsection 160ARDAC(5) , to have obtained the benefit because of a related transaction in relation to the dividend or notional trust amount.

160ARDAE(3)   [Benefit]  

The controller or associate is taken, for the purposes of section 160ARDAD , to have benefited from a related transaction or arrangement that caused section 160ARDAC to apply to the dividend or notional trust amount at least to the extent of the benefit given to the controller or associate by the exempt institution.

160ARDAE(4)   [Unreasonable to apply subsec (2) or (3)]  

Subsection (2) or (3) does not apply to a benefit if the Commissioner is satisfied, having regard to all the circumstances, that it would be unreasonable to apply that subsection.