Document ID: chunk:federal_register_of_legislation:F2017L00229:body:0:p4
Version: federal_register_of_legislation:F2017L00229
Segment Type: other
Provision Reference: 
Character Range: 7579–10295

company or trust.
 (2) The Secretary must consider determining that an amount equal to the amount of the distribution received by the partner is excluded income in relation to the attributable stakeholder.
Division 2.3 Investor makes genuine transfer and receives distribution or credit
10 Application of Division 2.3
  This Division applies if:
 (a) an individual (the investor) makes a genuine transfer of capital to a company or trust of which the investor is not an attributable stakeholder; and
 (b) during a derivation period of the company or trust, the investor receives a distribution from the company or trust.
11 Genuine transfer of capital
  For section 10, a transfer 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 1207Y (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 Secretary 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 1207Z)
Division 3.1 No double counting of attributed income — general
13 No double counting of attributed income — general
 (1) For paragraphs 1207Z (1) (d) and (e) and (2) (d) and (e) of the Act, the Secretary 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 1207Z (1) (d) and (e) and (2) (d) and (e) of the Act, the Secretary must also consider if a company