Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 12/34)
Character Range: 3554467–3557100

those shares or interests; and
 (e) the parties that were involved in the *distribution event or *arrangement concerned deal with one another on an *arm's length basis in relation to the event or arrangement.

A vested and indefeasible interest constitutes a fixed interest
 (2) The receiving entity's interest in a trust is a fixed interest if the interest is a vested and indefeasible interest in the trust's capital.

Special rule about whether interests in unit trusts are defeasible
 (3) If:
 (a) the trust is a unit trust and the receiving entity holds units in the unit trust; and
 (b) the units are redeemable or further units are able to be issued; and
 (c) the units held by the receiving entity will be redeemed, or any further units will be issued:
 (i) if units in the unit trust are listed for quotation in the official list of an *approved stock exchange—for the price at which other units of the same kind in the unit trust are offered for sale on the exchange at the time of the redemption or issue; or
 (ii) if the units are not listed as mentioned in subparagraph (i)—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 receiving entity's interest, as a unit holder, in the trust's capital is defeasible.

Commissioner's power to treat an interest in a trust as being a fixed interest
 (4) If:
 (a) the receiving entity has an interest in the trust's capital; 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 Commissioner may determine that the interest is to be taken to be vested and indefeasible.
 (5) A determination made under subsection (4) has effect according to its terms.

207‑130  Controller's liability
 (1) A *controller (for imputation purposes) of an entity (the controlled entity) is liable to pay an amount under this section in respect of a refund paid to the controlled entity under Division 67 if:
 (a) the controlled entity claimed the refund wholly or partly on the basis that:
 (i) the controlled entity was entitled to a *tax offset under section 207‑20, 207‑45 or 207‑110 in relation to a *franked