Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 16/34)
Character Range: 3564179–3567018

Part III of the Income Tax Assessment Act 1936 if:
 (a) the beneficiary has claimed a *tax offset under section 207‑45 or 207‑110 of this Act on the basis that the beneficiary was an *exempt institution that was eligible for a refund in relation to a *trust share amount that is that share of trust income; but
 (b) the beneficiary was not entitled to that tax offset because of the operation of section 207‑120, 207‑122, 207‑124 or 207‑126 in respect of a *distribution event, or an *arrangement, to which the trust share amount is related.
Note: This means that the trustee of the trust is liable to pay income tax on that share of the trust income.

207‑136  Review of certain decisions
  An entity that is dissatisfied with a decision of the Commissioner under any of the following provisions may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953:
 (a) paragraph 207‑120(3)(b);
 (b) subsection 207‑126(2);
 (c) subsection 207‑128(4);
 (d) paragraph 207‑130(1)(e);
 (e) paragraph 207‑130(8)(b);
 (f) subsection 207‑132(4).

Subdivision 207‑F—No gross‑up or tax offset where the imputation system has been manipulated

Guide to Subdivision 207‑F

207‑140  What this Subdivision is about
      This Subdivision creates the appropriate adjustment to cancel the effect of the gross‑up and tax offset rules where the entity concerned has manipulated the imputation system in a manner that is not permitted under the income tax law.

Table of sections

Operative provisions
207‑145 Distribution that is made to an entity
207‑150 Distribution that flows indirectly to an entity
207‑155 When is a distribution made as part of a dividend stripping operation?
207‑157 Distribution washing
207‑158 Distributions entitled to a foreign income tax deduction
207‑159 Distributions funded by capital raising
207‑160 Distribution that is treated as an interest payment

Operative provisions

207‑145  Distribution that is made to an entity

Whole of distribution manipulated
 (1) If a *franked distribution is made to an entity in one or more of the following circumstances:
 (a) the entity is not a qualified person in relation to the distribution for the purposes of Division 1A of former Part IIIAA of the Income Tax Assessment Act 1936;
 (b) the Commissioner has made a determination under paragraph 177EA(5)(b) of that Act that no imputation benefit (within the meaning of that section) is to arise in respect of the distribution for the entity;
 (c) the Commissioner has made a determination under paragraph 204‑30(3)(c) of this Act that no *imputation benefit is to arise in respect of the distribution for the entity;
 (d) the distribution is made as part of a *dividend stripping operation;
 (da) the distribution is one to which section 207‑157 (which is about distribution washing) applies;
 (db) the