Income Tax Assessment Act 1997
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Hide history noteSECTION 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.
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