Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:29_177ea:p3
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 29 cl 177EA (pt 3/6)
Character Range: 444648–447510

amount that:
 (i) the Commissioner considers reasonable in the circumstances; and
 (ii) does not exceed the amount of the franking debit or exempting debit of the entity arising under item 1 of the table in section 205‑30 of the Income Tax Assessment 1997 or item 2 of the table in section 208‑120 of that Act in respect of the distribution.

Effect of determination that no imputation benefit is to arise

 (11) If the Commissioner makes a determination under paragraph (5)(b), the determination has effect according to its terms.

Application of section to non‑share dividends

 (12) This section:
 (a) applies to a non‑share equity interest in the same way as it applies to a membership interest; and
 (b) applies to an equity holder in the same way as it applies to a member; and
 (c) applies to a non‑share dividend in the same way as it applies to a distribution.

Meaning of interest in membership interests

 (13) A person has an interest in membership interests if:
 (a) the person has any legal or equitable interest in the membership interests; or
 (b) the person is a partner in a partnership and:
 (i) the assets of the partnership include, or will include, the membership interests; or
 (ii) the partnership derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests; or
 (c) the person is a beneficiary of a trust (including a potential beneficiary of a discretionary trust) and:
 (i) the membership interests form, or will form, part of the trust estate; or
 (ii) the trust derives, or will derive, income indirectly through interposed companies, trusts or partnerships, from distributions made on the membership interests.

Meaning of scheme for a disposition

 (14) A scheme for a disposition of membership interests or an interest in membership interests includes, but is not limited to, a scheme that involves any of the following:
 (a) issuing the membership interests or creating the interest in membership interests;
 (b) entering into any contract, arrangement, transaction or dealing that changes or otherwise affects the legal or equitable ownership of the membership interests or interest in membership interests;
 (c) creating, varying or revoking a trust in relation to the membership interests or interest in membership interests;
 (d) creating, altering or extinguishing a right, power or liability attaching to, or otherwise relating to, the membership interests or interest in membership interests;
 (e) substantially altering any of the risks of loss, or opportunities for profit or gain, involved in holding or owning the membership interests or having the interest in membership interests;
 (f) the membership interests or interest in membership interests beginning to be included, or ceasing to be included, in any of the insurance