Document ID: chunk:federal_register_of_legislation:C2010C00603:clause:3_4:p2
Version: federal_register_of_legislation:C2010C00603
Segment Type: clause
Provision Reference: sch 3 cl 4 (pt 2/8)
Character Range: 87296–90114

expected to obtain, a benefit, advantage, right or privilege:
 (i) the entity making the distribution;
 (ii) an entity through which the distribution flows indirectly to the ineligible entity;
 (iii) an *associate of any of those entities.

Note: For when paragraph (d) is satisfied, see also subsection 207‑132(2).

Exception to paragraph (2)(b) or (c)

 (3) Paragraph (2)(b) or (c) does not apply if:
 (a) that paragraph would otherwise apply only because of expenses the ineligible entity has incurred, will incur, or may reasonably be expected to incur, for the purpose of obtaining the *franked distribution or *trust share amount mentioned in that paragraph; and
 (b) the Commissioner considers the expenses to be reasonable.

Trust share amount

 (4) An entity's trust share amount in relation to a *franked distribution that *flows indirectly to the entity under subsection 207‑50(3) or (4) is the entity's share amount that is mentioned in that subsection.

Distribution event

 (5) A distribution event in relation to a *franked distribution is an act, transaction or circumstance that has happened, will happen, or may reasonably be expected to happen, as part of, in relation to or as a result of:
 (a) the payment or receipt of the distribution; or
 (b) if the distribution *flows indirectly to an entity under subsection 207‑50(3) or (4)—the arising of, or the distribution or receipt of, the entity's *trust share amount in relation to the distribution; or
 (c) an *arrangement entered into in association with a matter mentioned in paragraph (a) or (b).

207‑122  Entity may be ineligible if distribution is in the form of property other than money

  This section applies to an entity (the ineligible entity) to whom a *franked distribution is made, or *flows indirectly under subsection 207‑50(3) or (4), if:
 (a) one of the following is in the form of property other than money:
 (i) if the distribution is made to the ineligible entity—all or part of the distribution;
 (ii) if the distribution flows indirectly to the ineligible entity through the trustee of a trust under subsection 207‑50(3) or (4)—all or a part of a distribution (the trust distribution) made by the trustee of the trust that relates to the ineligible entity's *trust share amount in relation to the franked distribution; and
 (b) the terms and conditions on which the franked distribution or trust distribution is made are such that the ineligible entity:
 (i) does not receive immediate custody and control of the property; or
 (ii) does not have the unconditional right to retain custody and control of the property in perpetuity; or
 (iii) does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property.

207‑124  Entity may be ineligible if other money or property also acquired