Document ID: chunk:federal_register_of_legislation:C2005C00508:clause:1_1208l:p1
Version: federal_register_of_legislation:C2005C00508
Segment Type: clause
Provision Reference: sch 1 cl 1208L (pt 1/3)
Character Range: 58779–61487

1208L  Disposal of asset by company or trust

 (1) If:
 (a) an individual is an attributable stakeholder of a company or trust; and
 (b) the company or trust disposes of an asset of the company or trust;
Division 2 of Part 3.12, section 93U and sections 198F to 198MA (inclusive) apply, and are taken to have applied, as if:
 (c) the individual had disposed of an asset of the individual; and
 (d) the amount of the disposition referred to in paragraph (c) were equal to the individual's asset attribution percentage of the amount of the disposition referred to in paragraph (b).

 (2) Subsection (1) has effect subject to subsection (3).

Secretarial determinations

 (3) The Secretary may, by writing:
 (a) determine that the disposal of a specified asset is exempt from subsection (1); or
 (b) determine that subsection (1) has effect, in relation to the disposal of a specified asset, as if the reference in paragraph (1)(d) to the individual's asset attribution percentage were a reference to such lower percentage as is specified in the determination.

 (4) A determination under subsection (3) has effect accordingly.

 (5) In making a determination under subsection (3), the Secretary must comply with any relevant decision‑making principles.

General disposal

 (6) For the purposes of subsection (1), a company or trust disposes of assets of the company or trust if:
 (a) on or after 1 January 2002, the company or trust, or an attributable stakeholder of the company or trust, engages in a course of conduct that directly or indirectly:
 (i) destroys all or some of the company's or trust's assets; or
 (ii) disposes of all or some of the company's or trust's assets; or
 (iii) diminishes the value of all or some of the company's or trust's assets; and
 (b) one of the following subparagraphs is satisfied:
 (i) the company or trust receives no consideration in money or money's worth for the destruction, disposal or diminution;
 (ii) the company or trust receives inadequate consideration in money or money's worth for the destruction, disposal or diminution;
 (iii) the Secretary is satisfied that the purpose, or the dominant purpose, of the company, trust or stakeholder in engaging in that course of conduct was to obtain a social security advantage for an attributable stakeholder of the company or trust (who may be the first‑mentioned stakeholder) or for a relative of an attributable stakeholder of the company or trust; and
 (c) in the case of a company—the disposal is not by way of making a distribution of capital or profits of the company to a shareholder of the company; and
 (d) in the case of a trust—the disposal is not by way of:
 (i) making a distribution (whether in money