Document ID: chunk:federal_register_of_legislation:F2025L00233:reg:4a:p3
Version: federal_register_of_legislation:F2025L00233
Segment Type: reg
Provision Reference: reg 4A (pt 3/7)
Character Range: 9092–12171

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 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)