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 207-132   Treatment of benefits provided by an entity to a controller  

207-132(1)    
This section applies in relation to a benefit (the relevant benefit ) given by an entity to a *controller (for imputation purposes) of the entity, or to an *associate of such a controller, if:

(a) the controller or associate:

(i) makes a *franked distribution to the entity; or

(ii) is the trustee of the trust in relation to which a *trust share amount of the entity arises in relation to a franked distribution that *flows indirectly to the entity; and

(b) the benefit is, or was, given to the controller or associate at any time during the period that starts 3 years before, and ends 3 years after, the distribution is made or the trust share amount arises (as appropriate).

207-132(2)    
For the purposes of paragraph 207-120(2) (d), the controller or *associate is taken to have obtained the relevant benefit because of a *distribution event in relation to the *franked distribution or *trust share amount.

207-132(3)    
For the purposes of paragraph 207-130(1) (c), and at least to the extent of the relevant benefit, the controller or *associate is taken to have benefited from a *distribution event or *arrangement that caused section 207-120 to apply in relation to the *franked distribution or *trust share amount.

Commissioner ' s power not to apply subsection (2) or (3)

207-132(4)    
Subsection (2) or (3) does not apply in relation to a benefit if the Commissioner is satisfied, having regard to all the circumstances, that it would be unreasonable to apply that subsection.