Document ID: chunk:federal_register_of_legislation:C2014C00710:clause:2_10
Version: federal_register_of_legislation:C2014C00710
Segment Type: clause
Provision Reference: sch 2 cl 10
Character Range: 33222–35043

10  At the end of Subdivision 126‑G
Add:

126‑265  Interest sale facilities

Interest sale facilities
 (1) For the purposes of this Subdivision, an entity (the investor) is treated as owning a *membership interest (the roll‑over interest) in the receiving trust at a time (the deeming time), if:
 (a) the investor owned a membership interest in the transferring trust; and
 (b) a trust is created, or a transfer happens, (the transaction) as mentioned in paragraph 126‑225(1)(a) in relation to *CGT assets of the transferring trust; and
 (c) because:
 (i) a *foreign law impedes the ability of the receiving trust to issue or transfer the roll‑over interest to the investor; or
 (ii) it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of the receiving trust to issue or transfer the roll‑over interest to the investor;
  it is *arranged that the receiving trust will issue or transfer the roll‑over interest to another entity (the facility) under the transaction instead of to the investor; and
 (d) in accordance with that arrangement and as a result of the transaction, the facility:
 (i) becomes the owner of the roll‑over interest; and
 (ii) owns the roll‑over interest at the deeming time; and
 (e) under the arrangement, the investor is entitled to receive from the facility:
 (i) an amount equivalent to the *capital proceeds of any *CGT event that happens in relation to the roll‑over interest (less expenses); or
 (ii) if a CGT event happens in relation to the roll‑over interest together with CGT events happening in relation to other membership interests—an amount equivalent to the investor's proportion of the total capital proceeds of the CGT events (less expenses).
 (2) The facility is treated as not owning the roll‑over interest at the deeming time.