Document ID: chunk:federal_register_of_legislation:C2025C00014:section:177ea:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 177EA (pt 3/6)
Character Range: 1630530–1633453

section to non‑share dividends
 (12) This section:
 (a) applies to a non‑share equity interest in the same way as it applies to a membership interest; and
 (b) applies to an equity holder in the same way as it applies to a member; and
 (c) applies to a non‑share dividend in the same way as it applies to a distribution.

Meaning of interest in membership interests
 (13) A person has an interest in membership interests if:
 (a) the person has any legal or equitable interest in the membership interests; or
 (b) the person is a partner in a partnership and:
 (i) the assets of the partnership include, or will include, the membership interests; or
 (ii) the partnership derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests; or
 (c) the person is a beneficiary of a trust (including a potential beneficiary of a discretionary trust) and:
 (i) the membership interests form, or will form, part of the trust estate; or
 (ii) the trust derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests.

Meaning of scheme for a disposition
 (14) A scheme for a disposition of membership interests or an interest in membership interests includes, but is not limited to, a scheme that involves any of the following:
 (a) issuing the membership interests or creating the interest in membership interests;
 (b) entering into any contract, arrangement, transaction or dealing that changes or otherwise affects the legal or equitable ownership of the membership interests or interest in membership interests;
 (c) creating, varying or revoking a trust in relation to the membership interests or interest in membership interests;
 (d) creating, altering or extinguishing a right, power or liability attaching to, or otherwise relating to, the membership interests or interest in membership interests;
 (e) substantially altering any of the risks of loss, or opportunities for profit or gain, involved in holding or owning the membership interests or having the interest in membership interests;
 (f) the membership interests or interest in membership interests beginning to be included, or ceasing to be included, in any of the insurance funds of a life assurance company.
 (15) In determining whether a distribution flows indirectly to a person, assume that the following provisions of the Income Tax Assessment Act 1997 had not been enacted:
 (a) section 295‑385 (about income from assets set aside to meet current pension liabilities), section 295‑390 (about income from other assets used to meet current pension liabilities) and 295‑400 (about income of a PST attributable to current pension liabilities); or
 (b) paragraph 320‑37(1)(a) (about segregated exempt assets) or paragraph 320‑37(1)(d) (about income bonds, funeral policies and scholarship