SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 8 - IN-HOUSE ASSET RULES APPLYING TO REGULATED SUPERANNUATION FUNDS  

Division 5 - Anti-avoidance  

SECTION 85   PROHIBITION OF AVOIDANCE SCHEMES  

85(1)   Prohibition.  

A person must not enter into, commence to carry out, or carry out, a scheme if the person entered into, commenced to carry out, or carried out the scheme or any part of the scheme with the intention that:


(a) the scheme would result, or be likely to result, in an artificial reduction in the market value ratio of the fund ' s in-house assets; and


(b) that artificial reduction would avoid the application of any provision of this Part to the fund.

85(2)   Civil penalty provision.  

Subsection (1) is a civil penalty provision as defined by section 193 , and Part 21 therefore provides for civil and criminal consequences of contravening, or being involved in a contravention of, that subsection.

85(3)   Validity of transaction not affected by contravention of subsection (1).  

A contravention of subsection (1) does not affect the validity of a transaction.

85(4)   Scheme.  

In this section:

scheme
means:


(a) any agreement, arrangement, understanding, promise or undertaking:


(i) whether express or implied; or

(ii) whether or not enforceable, or intended to be enforceable, by legal proceedings; and


(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.