Document ID: chunk:federal_register_of_legislation:C2010C00644:clause:3_102usa:p1
Version: federal_register_of_legislation:C2010C00644
Segment Type: clause
Provision Reference: sch 3 cl 102USA (pt 1/2)
Character Range: 8998–11689

102USA  Recovery of ultimate beneficiary non‑disclosure tax from persons providing incorrect information etc. to head trustee

 (1) This section applies if the requirements in subsections (2) to (4) are satisfied.

Requirement for payment of ultimate beneficiary non‑disclosure tax

 (2) A requirement for this section to apply is that:
 (a) the trustee of a closely held trust does not make a correct UB statement about the whole or part of a share of the net income of the trust of a year of income during the UB statement period in relation to the year of income; and
 (b) as a result, the trustee becomes liable, or the persons in the trustee group become jointly and severally liable, under section 102UK to pay ultimate beneficiary non‑disclosure tax; and
 (c) the trustee or any of the persons in the trustee group pays an amount (the recoverable amount) being some or all of the tax or any general interest charge under section 102UP in relation to the tax.

Requirement for refusal etc. to provide information or for incorrect statement

 (3) A requirement for this section to apply is that:
 (a) either:
 (i) the trustee of the closely held trust was unable to make a correct UB statement about the whole or the part of the share of the net income during the UB statement period because another person (the information source), when requested to do so, refused or failed to give information to the trustee; or
 (ii) the trustee of the closely held trust purported to make a correct UB statement about the whole or the part of the share of the net income during the UB statement period, where the statement was not a correct UB statement because it contained incorrect information given to the trustee of the closely held trust by another person (also the information source), and the trustee honestly believed on reasonable grounds that the information was correct; and
 (b) the trustee of the closely held trust distributed to the trustee beneficiary an amount representing some or all of the share of the net income without withholding an amount under section 254 in respect of the recoverable amount.

Requirement for person failing to provide information etc. to be an ultimate beneficiary or trustee of interposed trust etc.

 (4) A requirement for this section to apply is that the information source is:
 (a) an ultimate beneficiary; or
 (b) the trustee beneficiary; or
 (c) the trustee of an interposed trust, or a partner in an interposed partnership, through which an ultimate beneficiary is presently entitled to some or all of the head trust amount concerned.

Consequences of section applying

 (5) If this section applies, the trustee or the person in the trustee