Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 13/34)
Character Range: 3556867–3559586

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 distribution; and
 (ii) the controlled entity was an *exempt institution that is eligible for a refund; and
 (b) because of the operation of section 207‑120, 207‑122, 207‑124 or 207‑126 in respect of a *distribution event or an *arrangement in relation to the distribution, the controlled entity is not entitled to the tax offset; and
 (c) the controller or an *associate of the controller benefited from that event or arrangement; and
 (d) some or all of the amount that the controlled entity is liable to pay in respect of the refund remains unpaid after the day on which the amount becomes due and payable; and
 (e) the Commissioner gives the controller written notice:
 (i) stating that the controller is liable to pay an amount under this section; and
 (ii) specifying that amount.
Except as provided for in subsection (5), this subsection does not affect any liability the controlled entity has in relation to the refund.
Note 1: Section 207‑134 also provides that the controlled entity's present entitlement to a trust share amount is disregarded for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.
Note 2: For when paragraph (c) is satisfied, see also subsection 207‑132(3).
 (2) The amount that the *controller (for imputation purposes) is liable to pay under subsection (1):
 (a) is the amount specified under subparagraph (1)(e)(ii); and
 (b) becomes due and payable at the end of the period of 14 days that starts on the day on which the notice mentioned in paragraph (1)(e) is given.
 (3) The amount that the *controller (for imputation purposes) is liable to pay under subsection (1) must not exceed the total amount or value of the benefit that the controller and its *associates obtained from the *distribution event or *arrangement.
 (4) The total of:
 (a) the amounts that the Commissioner recovers under subsection (1) in relation to the refund from all of the controlled entity's *controllers (for imputation purposes); and
 (b) the amounts that the Commissioner recovers in relation to the refund from the controlled entity;
must not exceed the amount that the controlled entity was liable to pay as mentioned in paragraph (1)(d).

Controller of a company
 (5) An entity is a controller (for imputation purposes) of a company if the entity is a *controller of the company (for CGT purposes).

Controller of an entity other than a company—basic meaning
 (6) Subject to subsections (7) and (8), an entity is a controller (for imputation