ACIS Administration Act 1999 (Repealed)

PART 1 - PRELIMINARY  

SECTION 6C   WHEN INVESTMENT UNDERTAKEN BY A PERSON MAY BE TREATED AS INVESTMENT UNDERTAKEN BY ANOTHER PERSON WHO IS A PARTICIPANT  
Outline of section

(1)    
This section allows the Secretary, in limited circumstances, to treat investment undertaken by a person who may or may not be a participant (the original investor ) as eligible investment undertaken by another person who is a participant (the participant ). For investment to be treated in this way:

(a) the participant must apply, in an approved form, to the Secretary; and

(b) the Secretary must make a determination under subsection (3) that the circumstances of the relationship between the original investor and the participant fall within the kinds of circumstances set out in guidelines made under subsection (2); and

(c) the Secretary must make a determination of a kind referred to in subsection (4) or (5) in respect of the investment.

Guidelines dealing with the circumstances of the relationship between the original investor and the participant

(2)    
The Minister may make guidelines setting out the circumstances in which the relationship between 2 persons are circumstances in which the Secretary may make a determination under subsection (3).

Secretary to first determine if original investor and participant ' s circumstances fall within guidelines

(3)    
The Secretary must examine the circumstances of the relationship between the original investor and the participant. If, after examining the circumstances, the Secretary is satisfied that the circumstances fall within the circumstances set out in the guidelines made under subsection (2), the Secretary may make a determination to that effect. Only after making that determination may the Secretary make a determination under subsection (4) or (5), as appropriate.

Eligible investment undertaken by original investor when original investor was a participant

(4)    
If:

(a) the original investor was a participant at the time that the investment was undertaken; and

(b) the investment was eligible investment of a particular type; and

(c) the Secretary is satisfied that it is reasonable in all of the circumstances to allow the investment to be treated as eligible investment of that type undertaken by the participant; the Secretary may determine in writing that the eligible investment is taken to be eligible investment of that type undertaken by the participant. The determination has effect accordingly.

Original investor not a participant when investment made

(5)    
If:

(a) the original investor was not a participant at the time the investment was undertaken; and

(b) the Secretary is satisfied that:

(i) if the investment had been undertaken by a participant, the investment would be eligible investment of a type specified by the Secretary; and

(ii) it is reasonable in all of the circumstances to allow the investment by the original investor to be treated as eligible investment undertaken by the participant;

the Secretary may determine in writing that the investment is:

(c) eligible investment of a type specified by the Secretary; and

(d) taken to be investment of that type undertaken by the participant. The determination has effect accordingly.

Minister may determine guidelines

(6)    
The Minister may determine guidelines that are to be taken into account by the Secretary in making a decision under subsection (4) or (5).

Guidelines disallowable instruments

(7)    
Guidelines made under subsections (2) and (6) are disallowable instruments within the meaning of section 46A of the Acts Interpretation Act 1901 .