Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p51
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 51/79)
Character Range: 2330576–2333291

or capital.

Determination about unpaid tax
 (2) If:
 (a) the Commissioner determines, in writing, at or after the time when the tax became due and payable, that it is unlikely that the whole or part (the unpaid amount) of the tax will be paid; and
 (b) at the time:
 (i) if the primary interposed entity is a company—the company is a non‑resident; and
 (ii) if the primary interposed entity is a partnership—a partner is a non‑resident; and
 (iii) if the primary interposed entity is a trust—either a trustee is a non‑resident or the central management and control of the trust is outside Australia;
then the consequences in subsection (3) result.

Consequences
 (3) The consequences are:
 (a) if there is only one person covered by subsection (4)—that person is liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount; and
 (b) if there are 2 or more persons covered by subsection (4)—those persons are jointly and severally liable to pay tax, as imposed by the Family Trust Distribution Tax (Secondary Liability) Act 1998, on the unpaid amount.

Persons covered
 (4) The persons covered by this subsection are:
 (a) any company to which subsection (5) applies; and
 (b) any person who is a director of such a company when the determination is made; and
 (c) any partner in a partnership to which subsection (5) applies; and
 (d) if any partner in any such partnership is a company—any person who is a director of the company when the determination is made; and
 (e) the trustee of any trust to which subsection (5) applies; and
 (f) if the trustee of any such trust is a company—any person who is a director of the company when the determination is made.

Entities making election and distribution etc.
 (5) This subsection applies to any company, partnership or trust (an entity), other than the primary interposed entity, meeting the following conditions:
 (a) the company, the partners in the partnership or the trustee of the trust made:
 (i) an interposed entity election to be included in the family group of the primary individual; or
 (ii) a family trust election specifying the primary individual; and
 (b) while that election and the interposed entity election made in respect of the primary interposed entity were in force, and before the Commissioner made the determination mentioned in paragraph (2)(a), the entity conferred a present entitlement to, or distributed, income or capital upon or to an eligible entity (see subsection (6)).

Eligible entities
 (6) Each of the following is an eligible entity:
 (a) the primary interposed entity;
 (b) a company in respect of which an interposed entity election had been made to be included