Income Tax Assessment Act 1997
The first situation is one in which:
(a) the *corporate tax entity makes a *franked distribution, or a *distribution franked with an exempting credit, to a *member of the entity in respect of a *membership interest in the entity; and
(b) at the *distribution closing time, the member is under an obligation to transfer the membership interest to another person under a contract for the sale of the membership interest; and
(c) the contract:
(i) requires that the distribution be paid on to the other person; and
(ii) is entered into in the ordinary course of trading on an *approved stock exchange in Australia or elsewhere.
The *distribution is taken to have been made to the other person as a *member of the entity (and not to the member).
The *distribution referred to in paragraph (1)(a) includes a distribution that is taken to be made as a result of one or more previous applications of this section or section 216-10 .
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