Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:2_160ardac:p4
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 2 cl 160ARDAC (pt 4/5)
Character Range: 29785–32422

holding of those shares or interests; and
 (h) the following deal with one another on an arm's length basis in relation to any related transaction or arrangement in relation to the dividend or notional trust amount that, but for this subsection, would have prevented the institution's exempt status from being disregarded in relation to the dividend or notional trust amount:
 (i) the institution;
 (ii) the company that paid the dividend or the trustee of the trust in relation to which the notional trust amount arises;
 (iii) any other entity involved in, connected with or party to the related transaction or arrangement.

Note: Subparagraph (11)(a)(ii)—for fixed interest see subsections (12) to (15).

A vested and indefeasible interest constitutes a fixed interest

 (12) For the purposes of subsection (11), a taxpayer's interest in a trust estate is a fixed interest if it is a vested and indefeasible interest in the corpus of the trust estate.

Case where interest not defeasible

 (13) If:
 (a) the trust is a unit trust and the taxpayer holds units in the unit trust; and
 (b) the units are redeemable or further units are able to be issued; and
 (c) where units in the unit trust are listed for quotation in the official list of an approved stock exchange (within the meaning of section 470)—the units held by the taxpayer will be redeemed, or any further units will be issued, for the price at which other units of the same kind in the unit trust are offered for sale on the approved stock exchange at the time of the redemption or issue; and
 (d) where the units are not listed as mentioned in paragraph (c)—the units held by the taxpayer will be redeemed, or any further units will be issued, for their market value at the time of the redemption or issue;
then the mere fact that the units are redeemable, or that the further units are able to be issued, does not mean that the taxpayer's interest, as a unit holder, in the corpus of the trust estate is defeasible.

Commissioner may determine an interest to be vested and indefeasible

 (14) If:
 (a) a taxpayer has an interest in the corpus of a trust estate; and
 (b) apart from this subsection, the interest would not be a vested or indefeasible interest; and
 (c) the Commissioner considers that the interest should be treated as being vested and indefeasible, having regard to:
 (i) the circumstances in which the interest is capable of not vesting or the defeasance can happen; and
 (ii) the likelihood of the interest not vesting or the defeasance happening; and
 (iii) the nature of the trust; and
 (iv) any other matter the Commissioner thinks relevant;
the