DUTIES ACT 1997 - SECT 163F
Concession for redemption and re-issue arrangements
DUTIES ACT 1997 - SECT 163F
Concession for redemption and re-issue arrangements
163F Concession for redemption and re-issue arrangements
(1) This section applies if--
(a) the trustee of a unit trust scheme that is a
widely held trust redeems any units in the trust, and
(b) the redemption is
done for the purpose of re-issuing or re-offering the units for sale, and
(c)
as a result of the redemption, the scheme would, but for this section, cease
to be a widely held trust because a unit holder, individually or together with
any associated person, is entitled to more than 20% of the units in the trust.
(2) For a period of 30 days beginning on and including the day on which the
redemption occurs, the trust is taken to continue to be a widely held trust,
but only if the trust continues to have not less than 300 unit holders none of
whom, individually or together with any associated person, is entitled to more
than 25% of the units of the trust.
(3) If, at the end of that 30-day period,
a unit holder, individually or together with any associated person, is
entitled to more than 20% of the units in the unit trust scheme--
(a) the
trust is taken to have ceased to be a widely held trust from the beginning of
that 30-day period (as if subsection (2) had never applied), and
(b) the
Chief Commissioner must make an assessment of the duty chargeable under this
Act as if the unit trust scheme had ceased to be a widely held trust scheme at
the beginning on that 30-day period, and
(c) a tax default occurs for the
purposes of the Taxation Administration Act 1996if the whole of any duty
assessed under paragraph (b) is not paid to the Chief Commissioner within 3
months after the assessment.