Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 207 - Effect of receiving a franked distribution  

Subdivision 207-E - Exceptions to the rules in Subdivision 207-D  

Exempt institutions

SECTION 207-122  

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.