Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:2_160ardac:p1
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 2 cl 160ARDAC (pt 1/5)
Character Range: 22420–25105

160ARDAC  Franking rebates denied in certain circumstances

 (1) The exempt institution's exempt status is not disregarded in relation to a dividend or notional trust amount if subsection (2), (4), (5), (6), (7), (9) or (10) is satisfied. None of those subsections limits any of the others.

 (2) The institution's exempt status is not disregarded if:
 (a) there is a related transaction in relation to the dividend or notional trust amount; and
 (b) because of the related transaction:
 (i) the amount or value of the benefit derived by the institution because of the dividend is, will be, or may reasonably be expected to be, less than the amount or value of the dividend at the time when the dividend was paid; or
 (ii) the amount or value of the benefit derived by the institution because of the notional trust amount is, will be, or may reasonably be expected to be, less than the amount or value of the notional trust amount at the time when the notional trust amount arose.
The amount or value of the dividend or notional trust amount is to be increased to include the value of any franking rebate to which the institution would be entitled if this section did not apply to the dividend or notional trust amount.

 (3) Subsection (2) does not apply to the dividend or notional trust amount if:
 (a) the only reason why paragraph (2)(b) is satisfied is that the institution has incurred, will incur, or may reasonably be expected to incur, expenses for the purpose of obtaining the dividend or notional trust amount (and the associated franking rebate); and
 (b) the expenses are, in the Commissioner's opinion, reasonable in relation to the value of the dividend or notional trust amount.

 (4) Subject to subsection (11), the institution's exempt status is not disregarded if:
 (a) there is a related transaction in relation to the dividend or notional trust amount; and
 (b) because of the related transaction, the institution or another entity:
 (i) makes, becomes liable to make, or may reasonably be expected to make or to become liable to make, a payment to any entity; or
 (ii) transfers, becomes liable to transfer, or may reasonably be expected to transfer or to become liable to transfer, any property to any entity; or
 (iii) incurs, becomes liable to incur, or may reasonably be expected to incur or to become liable to incur, any other detriment, disadvantage, liability or obligation.

 (5) Subject to subsection (11), the institution's exempt status is not disregarded if:
 (a) there is a related transaction in relation to the dividend or notional trust amount; and
 (b) because of the related transaction:
 (i) the company that paid the dividend or an associate