Document ID: chunk:federal_register_of_legislation:C2010C00603:clause:3_4:p1
Version: federal_register_of_legislation:C2010C00603
Segment Type: clause
Provision Reference: sch 3 cl 4 (pt 1/8)
Character Range: 84843–87561

4  At the end of Subdivision 207‑E
Add:

207‑119  Entity not treated as exempt institution eligible for refund in certain circumstances

  For the purposes of this Act:
 (a) an entity must not be treated as an *exempt institution that is eligible for a refund in relation to a *franked distribution if section 207‑120, 207‑122 or 207‑124 applies to the entity in relation to the distribution; and
 (b) a beneficiary of a trust must not be treated as an exempt institution that is eligible for a refund in relation to a franked distribution made in an income year if section 207‑126 applies to the beneficiary in relation to that income year.

207‑120  Entity may be ineligible because of a distribution event

 (1) This section applies to an entity (the ineligible entity) if:
 (a) a *franked distribution is made, or *flows indirectly under subsection 207‑50(3) or (4), to the entity; and
 (b) subsection (2) of this section applies because of a *distribution event in relation to the distribution.

 (2) Subject to subsection (3) and to section 207‑128, this subsection applies if, because of a *distribution event in relation to the *franked distribution:
 (a) the ineligible entity or another entity:
 (i) makes, becomes liable to make, or may reasonably be expected to make or to become liable to make, a payment to any entity; or
 (ii) transfers, becomes liable to transfer, or may reasonably be expected to transfer or to become liable to transfer, any property to any entity; or
 (iii) incurs, becomes liable to incur, or may reasonably be expected to incur or to become liable to incur, any other detriment, disadvantage, liability or obligation; or
 (b) if the distribution is made to the ineligible entity—the amount or value of the benefit derived by the ineligible entity from the distribution is, will be, or may reasonably be expected to be, less than the amount or value of the distribution as at the time the distribution is made; or
 (c) if the distribution *flows indirectly to the ineligible entity—the amount or value of the benefit derived by the ineligible entity from the ineligible entity's *trust share amount in relation to the distribution is, will be, or may reasonably be expected to be, less than the amount or value of the ineligible entity's trust share amount in relation to the distribution as at the time when that amount arises; or
 (d) any of the following entities has obtained, will obtain or may reasonably be expected to obtain, a benefit, advantage, right or privilege:
 (i) the entity making the distribution;
 (ii) an entity through which the distribution flows indirectly to the ineligible entity;
 (iii) an *associate of any of those entities.

Note: For when paragraph