Document ID: chunk:federal_register_of_legislation:F2022C00244:reg:22
Version: federal_register_of_legislation:F2022C00244
Segment Type: reg
Provision Reference: reg 22
Character Range: 33892–35109

22  Uncommercial transactions and benefits to founders and donors
 (1) The trustee of *private ancillary fund must ensure the fund does not enter into any transaction that is uncommercial when entered into, unless the transaction is:
 (a) with a *deductible gift recipient covered by item 1 in the table in section 30‑15 of the Income Tax Assessment Act 1997; and
 (b) in the course or furtherance of the fund's purpose.
Penalty: 30 penalty units.
 (2) However, subsection (1) does not prevent the fund from entering into an uncommercial transaction on terms each of which is more favourable to the fund than would otherwise be expected under an arms' length transaction.
 (3) The trustee of a *private ancillary fund must ensure the fund does not *provide any benefit (except as set out in section 23), directly or indirectly, to:
 (a) the trustee; or
 (b) a *member, director, employee, *agent or officer of the trustee; or
 (c) a donor to the fund; or
 (d) a founder of the fund; or
 (e) a *relative of an individual covered by paragraph (c) or (d); or
 (f) an *associate of any of those entities (other than a *deductible gift recipient).
Penalty: An amount equal to the amount or value of the benefit provided.