Document ID: chunk:federal_register_of_legislation:F2015L00068:front:0:p36
Version: federal_register_of_legislation:F2015L00068
Segment Type: other
Provision Reference: 
Character Range: 93159–95768

the individual's asset attribution percentage, in relation to the company or trust, before and after the disposal of the asset.

13 Disposal by way of dividend or distribution to genuine investor

 (1) This section applies if:
 (a) during a derivation period of a company, the company pays a dividend to an individual who is not an attributable stakeholder of the company; and
 (b) the individual has, before or during the derivation period, made a genuine transfer of capital to the company.

 (2) This section also applies if:
 (a) during a derivation period of a trust, the trust makes a distribution to an individual who is not an attributable stakeholder of the trust; and
 (b) the individual has, before or during the derivation period, made a genuine transfer of capital to the trust.

 (3) For subsections (1) and (2), a transfer of capital is a genuine transfer of capital if:
 (a) the individual 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 individual has a legal or equitable right to a share of the capital on the winding-up of the company or trust; and
 (c) the individual has a legal or equitable right to receive dividends or distributions in accordance with the constituent documents of the company or under the terms of the trust; and
 (d) the individual is over 18 years.

 (4) The Commission must consider whether the amount of the dividend or the value of the distribution is reasonable, having regard to the proportion of the value of the capital transferred by the individual to the total value of the assets owned by the company or trust at the time of the transfer.

Part 4 Disposal of asset (before 1 January 2002) by attributable stakeholder

14 Purpose of Part 4

  This Part sets out decision-making principles with which the Commission must comply in making a determination for subsection 52ZZZ (1) of the Act.

15 Definitions

  In this Part:
individual means an individual who transfers property to a company or trust in accordance with subsection 52ZZZ (1) of the Act.

16 Application of asset disposal provisions where value of asset same or greater

 (1) This section applies if:
 (a) an asset is disposed of by an individual to a company or trust; and
 (b) on 1 January 2002, the asset is owned by the company or trust; and
 (c) on 1 January 2002, the value of the asset is the same as, or greater than, it was at the time of its disposal.

 (2) The Commission must consider whether, in all the circumstances, the application of the asset