Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 16/18)
Character Range: 2725432–2728152

(3) A trustee commits an offence if the trustee contravenes subsection (1).
Penalty: 30 penalty units.
 (4) An offence against subsection (3) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.

If the transferring trust has multiple trustees
 (5) If the transferring trust has 2 or more trustees, the obligation imposed by subsection (1) is imposed on each of the trustees, but may be discharged by any of the trustees.
Note: Each of the trustees commits an offence against subsection (3) if none of them discharges the obligation imposed by subsection (1).
 (6) In a prosecution of a trustee for an offence against subsection (3) for an act or omission contravening subsection (1), it is a defence if the trustee proves that the trustee:
 (a) did not aid, abet, counsel or procure the act or omission; and
 (b) was not in any way knowingly concerned in, or party to, the act or omission (whether directly or indirectly and whether by any act or omission of the trustee).
Note: A defendant bears a legal burden in relation to the matters in subsection (6): see section 13.4 of the Criminal Code.

Obligations of beneficiary unaffected if not notified of roll‑over
 (7) A failure by a trustee to comply with subsection (1) does not affect the application of section 126‑245 to the beneficiary.

126‑265  Interest sale facilities

Interest sale facilities
 (1) For the purposes of this Subdivision, an entity (the investor) is treated as owning a *membership interest (the roll‑over interest) in the receiving trust at a time (the deeming time), if:
 (a) the investor owned a membership interest in the transferring trust; and
 (b) a trust is created, or a transfer happens, (the transaction) as mentioned in paragraph 126‑225(1)(a) in relation to *CGT assets of the transferring trust; and
 (c) because:
 (i) a *foreign law impedes the ability of the receiving trust to issue or transfer the roll‑over interest to the investor; or
 (ii) it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of the receiving trust to issue or transfer the roll‑over interest to the investor;
  it is *arranged that the receiving trust will issue or transfer the roll‑over interest to another entity (the facility) under the transaction instead of to the investor; and
 (d) in accordance with that arrangement and as a result of the transaction, the facility:
 (i) becomes the owner of the roll‑over interest; and
 (ii) owns the roll‑over interest at the deeming time; and
 (e) under the arrangement, the investor is entitled to receive from the facility:
 (i) an amount equivalent to the *capital proceeds of any *CGT event that happens in