Document ID: chunk:federal_register_of_legislation:F2015L00068:front:0:p29
Version: federal_register_of_legislation:F2015L00068
Segment Type: other
Provision Reference: 
Character Range: 75191–77901

of capital is a genuine transfer of capital if:
 (a) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and
 (b) the investor has a legal or equitable right to a share of the capital of the company or trust; and
 (c) the investor has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or the terms of the trust; and
 (d) the investor is over 18 years of age.

12 Excluded income

 (1) This section applies if:
 (a) an individual who is an attributable stakeholder of a company or trust is taken to receive attributable income in accordance with subsection 52ZZK (1) of the Act; and
 (b) the attributable income of the individual is taken to include additional ordinary income in the circumstances mentioned in section 10.

 (2) The Commission must consider determining that the amount of additional ordinary income worked out in accordance with subsection (3) is excluded income in relation to the attributable stakeholder.

 (3) The amount of excluded income is worked out by multiplying the amount of the distribution mentioned in paragraph 10 (b) by the income attribution percentage of the attributable stakeholder.

Part 3 Determination about excluded income (Act s 52ZZL)

Division 3.1 No double counting of attributed income — general

13 No double counting of attributed income — general

 (1) For paragraphs 52ZZL (1) (d) and (e) and (2) (d) and (e) of the Act, the Commission must have regard to the ordinary income of the individual received during the relevant attribution period and consider if the individual is an attributable stakeholder of:
 (a) more than 1 controlled private company; or
 (b) more than 1 controlled private trust; or
 (c) at least 1 controlled private company and 1 controlled private trust.

 (2) For paragraphs 52ZZL (1) (d) and (e) and (2) (d) and (e) of the Act, the Commission must also consider if a company or trust mentioned in subsection (1) has derived an amount, directly or indirectly, by way of dividend or other distribution from another controlled private company or controlled private trust.

14 No double counting if ordinary income significantly diminished

 (1) This section applies if:
 (a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and
 (b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and
 (c) the ordinary income of the individual derived from the company