Document ID: chunk:federal_register_of_legislation:C2010C00673:body:0:p52
Version: federal_register_of_legislation:C2010C00673
Segment Type: other
Provision Reference: 
Character Range: 128312–131201

at that time, any asset of the fund is situated in
Australia; and
  (b) at that time, the central management and control of the
fund is in Australia; and
  (c) at that time, the percentage worked out using the
following formula is not less than 50%:
        Accumulated entitlements of
             resident members
        ---------------------------  x  100
           Total assets of fund
where:
  'Accumulated entitlements of resident members' means the sum
of so much of the value of the assets of the fund at that time
as is attributable to:
    (i) deposits made to the fund before that time by or in
respect of members of the fund who are residents at that time;
and
    (ii) income or accretions arising from those deposits;
  'Total assets of fund' means the value of the assets of the
fund at that time.
Definitions
  "(2) In this section:
  'Australia' has the same meaning as in the Income Tax
Assessment Act 1936;
  'member' includes depositor;
  'resident' has the same meaning as in the Income Tax

Assessment Act 1936.".
  106. Paragraph 42(1)(a):
Before "regulated superannuation fund" insert "resident".
  107. Paragraph 43(a):
Omit "an approved deposit fund", substitute "a resident
approved deposit fund".
  108. Application
The amendments made by this Division apply in relation to the
1994-95 year of income and each later year of income.
  Division 2 - Amendments relating to contraventions that are
   taken into account in determining "complying superannuation
                          fund" status
  109. Object
The object of this Division is to limit the circumstances in
which contraventions are taken into account in determining
"complying superannuation fund" status.
  110. Paragraph 42(1)(b):
Omit the paragraph, substitute:
  "(b) either of the following conditions is satisfied:
    (i) the trustee did not contravene this Act or the
regulations in relation to the entity in respect of the year of
income;
    (ii) both:
      (A) the trustee contravened this Act or the regulations
in relation to the entity in respect of the year of income on
one or more occasions; and
      (B) the entity did not fail the culpability test set out
in subsection (1A) in relation to any of those
contraventions.".
  111. After subsection 42(1):
Insert:
  "(1A) For the purposes of subparagraph (1)(b)(ii), an entity
fails the culpability test in relation to a particular
contravention of this Act or the regulations if:
  (a) both:
    (i) all of the members of the entity were in any way
directly or indirectly knowingly concerned in, or party to, the
contravention; and
    (ii) the Commissioner, after considering:
      (A) the taxation consequences that would arise if the
entity were to be treated as a non-complying superannuation
fund for the purposes of Part IX of the Income Tax Assessment
Act 1936 in relation to the year of income concerned; and
      (B)