Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 385 - Primary production  

Subdivision 385-H - Rules that apply to all elections made under Subdivisions 385-E, 385-F and 385-G  

SECTION 385-163   Disentitling events  

385-163(1)    
A disentitling event happens when:

(a) you die; or

(b) you become bankrupt, insolvent, commence to be wound up, apply to take the benefit of a law for the relief of bankrupt or insolvent debtors, compound with creditors, or make an assignment of any property for the benefit of creditors; or

(c) you leave Australia permanently, or it appears to the Commissioner that you are about to do so; or

(d) you cease to carry on the ^* primary production business to which the election relates.

385-163(2)    
In the case of a partnership, a disentitling event happens when:

(a) a partner in the partnership becomes bankrupt, insolvent, commences to be wound up, applies to take the benefit of a law for the relief of bankrupt or insolvent debtors, compounds with creditors, or makes an assignment of any property for the benefit of creditors; or

(b) a partner leaves Australia permanently, or it appears to the Commissioner that a partner is about to do so; or

(c) the partnership ceases to carry on the ^* primary production business to which the election relates; or

(d) there is a variation in the constitution of the partnership or the interests of the partners.

385-163(3)    
In the case of a trust, a disentitling event happens when:

(a) (Repealed by No 136 of 2011)

(b) an order for the administration of the trust estate is made under a law relating to bankruptcy; or

(c) a beneficiary becomes bankrupt, insolvent, commences to be wound up, applies to take the benefit of a law for the relief of bankrupt or insolvent debtors, compounds with creditors, or makes an assignment of any property for the benefit of creditors; or

(d) the trustee or a beneficiary leaves Australia permanently, or it appears to the Commissioner that the trustee or a beneficiary is about to do so; or

(e) the trustee ceases to carry on the ^* primary production business to which the election relates.

385-163(4)    

However, in the case of a trust, a disentitling event does not happen if:

(a) either:

(i) the disentitling event is covered by paragraph 3(c); or

(ii) the disentitling event is covered by paragraph 3(d) and a beneficiary leaves Australia permanently, or it appears to the Commissioner that a beneficiary is about to do so; and

(b) the Commissioner makes a determination under subsection (5).

385-163(5)    

The Commissioner may make a determination for the purpose of subsection (4) if it is fair and reasonable to do so having regard to:

(a) the nature of the *disentitling event to which subsection (3) applies; and

(b) any relevant circumstances relating to the beneficiary mentioned in paragraph (3)(c) or (d); and

(c) any other relevant circumstances relating to the trust; and

(d) any other matters the Commissioner considers relevant.

385-163(6)    

A determination made under subsection (5) must be made in writing.

385-163(7)    

The Commissioner must give the trustee of the trust a copy of the determination.