Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:30_1:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 30 cl 1 (pt 1/3)
Character Range: 454780–457510

1  After Division 215
Insert:

Division 216—Cum dividend sales and securities lending arrangements

Table of Subdivisions

216‑A Circumstances where a distribution to a member of a corporate tax entity is treated as having been made to someone else
216‑B Statements to be made where there is a cum dividend sale or securities lending arrangement

Subdivision 216‑A—Circumstances where a distribution to a member of a corporate tax entity is treated as having been made to someone else

Table of sections

216‑1 When a distribution made to a member of a corporate tax entity is treated as having been made to someone else
216‑5 First situation (cum dividend sales)
216‑10 Second situation (securities lending arrangements)
216‑15 Distribution closing time

216‑1  When a distribution made to a member of a corporate tax entity is treated as having been made to someone else

  There are 2 situations in which a *franked distribution, or a distribution *franked with an exempting credit, that is made to a *member of a *corporate tax entity is taken to have been made to another entity.

216‑5  First situation (cum dividend sales)

 (1) The first situation is one in which:
 (a) the *corporate tax entity makes a *franked distribution, or a *distribution franked with an exempting credit, to a *member of the entity in respect of a *membership interest in the entity; and
 (b) at the *distribution closing time, the member is under an obligation to transfer the membership interest to another person under a contract for the sale of the membership interest; and
 (c) the contract:
 (i) requires that the distribution be paid on to the other person; and
 (ii) is entered into in the ordinary course of trading on an *approved stock exchange in Australia or elsewhere.

 (2) The *distribution is taken to have been made to the other person as a *member of the entity (and not to the member).

Note: As the other person is the entity receiving the distribution, there may be tax effects for the other person under Division 207 or 208.

 (3) The *distribution referred to in paragraph (1)(a) includes a distribution that is taken to be made as a result of one or more previous applications of this section or section 216‑10.

216‑10  Second situation (securities lending arrangements)

 (1) The second situation is one in which:
 (a) the *corporate tax entity makes a *franked distribution, or a *distribution franked with an exempting credit, to a *member of the entity in respect of a *membership interest in the entity; and
 (b) at the time the distribution was made, the member was under an obligation to pay the distribution to another person under a *securities lending arrangement; and
 (c) the obligation was incurred in