Income Tax Assessment Act 1997
View history note
Hide history noteA 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(a) (Repealed by No 136 of 2011)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.
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