Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 207 - Effect of receiving a franked distribution  

Subdivision 207-E - Exceptions to the rules in Subdivision 207-D  

Exempt institutions

SECTION 207-122  

207-122   Entity may be ineligible if distribution is in the form of property other than money  


This section applies to an entity (the ineligible entity ) to whom a *franked distribution is made, or *flows indirectly under subsection 207-50(3) or (4) , if:


(a) one of the following is in the form of property other than money:


(i) if the distribution is made to the ineligible entity - all or part of the distribution;

(ii) if the distribution flows indirectly to the ineligible entity through the trustee of a trust under subsection 207-50(3) or (4) - all or a part of a distribution (the trust distribution ) made by the trustee of the trust that relates to the ineligible entity ' s *trust share amount in relation to the franked distribution; and


(b) the terms and conditions on which the franked distribution or trust distribution is made are such that the ineligible entity:


(i) does not receive immediate custody and control of the property; or

(ii) does not have the unconditional right to retain custody and control of the property in perpetuity; or

(iii) does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property.

View surrounding sectionsView surrounding sectionsBack to top


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