INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 7AA - Franking rebates for certain exempt institutions  

SECTION 160ARDAD   CONTROLLER LIABLE TO PAY AMOUNT IN RESPECT OF REFUND IN SOME CASES  

160ARDAD(1)   [Liability in respect of refund]  

A controller of an exempt institution is liable to pay an amount in respect of a refund paid to the institution under Division 67 of the Income Tax Assessment Act 1997 if:

(a) the institution claimed the refund on the basis of an entitlement to a rebate under Division 6, 6A or 7 of this Part; and

(b) the institution was not entitled to the rebate because of the operation of section 160ARDAC in relation to a related transaction or arrangement; and

(c) the controller or an associate of the controller benefited from the related transaction or arrangement; and

(d) some or all of the amount that the institution is liable to pay in respect of the refund remains unpaid after the day on which the amount becomes due and payable; and

(e) the Commissioner gives the controller written notice:

(i) stating that the controller is liable to pay an amount under this section; and

(ii) specifying the amount that the controller is liable to pay.

Except as provided for in subsection (5), this subsection does not affect any liability the institution has in relation to the refund.

Note:

Section 160ARDAF also provides that the exempt institution's present entitlement to a notional trust amount is disregarded for the purposes of Division 6 of Part III .

160ARDAD(2)   [Objections]  

An entity that is dissatisfied with a decision of the Commissioner under subsection (1) in relation to the entity may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .

160ARDAD(3)   [Liability]  

The amount the controller is liable to pay under subsection (1):

(a) is the amount specified under subparagraph (1)(e)(ii); and

(b) becomes due and payable at the end of the period of 14 days that starts on the day on which the notice referred to in paragraph (1)(e) is given.

160ARDAD(4)   [Liability not to exceed benefit]  

The amount the controller is liable to pay under subsection (1) must not exceed the amount or value of the benefit that the controller or associate obtained from the related transaction or arrangement.

160ARDAD(5)   [Recovered amounts not to exceed refunds]  

The total of:

(a) the amounts that the Commissioner recovers in relation to the refund from controllers under subsection (1); and

(b) the amounts the Commissioner recovers in relation to the refund from the exempt institution;

must not exceed the amount of the refund.