Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p26
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 26/95)
Character Range: 5614355–5617081

trust, or the partnership, determines that you are entitled to a share of the exploration credits issued to the trust or partnership for the income year; and
 (e) the trustee of the trust, or the partnership, gives you a statement, in accordance with subsection (4), informing you of that entitlement;
you are taken, for the purposes of this Subdivision, to have been issued with an exploration credit under Subdivision 418‑E, for the income year, of an amount equal to your share of the exploration credits issued to the trust or partnership for the income year.

Effect of restrictions on distributions
 (2) Despite subsection (1), you are not taken, under that subsection, to have been issued with an *exploration credit under Subdivision 418‑E to the extent that, if the exploration credit referred to in paragraph (1)(b) were a *franked distribution of the same amount made:
 (a) at the time of the determination referred to in paragraph (1)(d); and
 (b) in relation to the interest, held by the trust or partnership, in relation to which the exploration credit referred to in paragraph (1)(b) is issued to the trust or partnership during the income year;
the terms and conditions under which the trust or partnership operates would not permit you to be paid the amount, or the proportion, of the franked distribution that would reflect your entitlement referred to in paragraph (1)(d).

Anti‑avoidance
 (3) Despite subsection (1), you are not taken, under that subsection, to have been issued with an *exploration credit under Subdivision 418‑E to the extent that, if the exploration credit were a distribution to you, from the trust or partnership, of a *franked distribution that:
 (a) was of the same amount as the amount of your share, referred to in paragraph (1)(d), of the exploration credit referred to in paragraph (1)(b); and
 (b) was made:
 (i) by the same entity that issued that exploration credit; and
 (ii) in relation to the same interest in that entity; and
 (iii) in the same circumstances in which that exploration credit was issued; and
 (c) *flowed indirectly through one or more trusts or partnerships that were the same as the one or more trusts or partnerships that, apart from subparagraphs 418‑10(b)(ii) and (iii), would have been entitled to a *tax offset under this Subdivision in relation to:
 (i) that exploration credit; or
 (ii) another exploration credit from which that exploration credit is directly or indirectly derived;
you would not be entitled to a tax offset under Division 207 in relation to the franked distribution.

Statements to members
 (4) A statement referred to in paragraph (1)(e) must:
 (a) be in the *approved form; and
 (b) be given to you on or before the due date: