DUTIES ACT 2001 - SECT 71 When unit trust may be treated as widely held unit trust

DUTIES ACT 2001 - SECT 71

71 When unit trust may be treated as widely held unit trust

(1) This section applies if the commissioner is satisfied—

(a) units in a unit trust (the
"start up units" ) will be issued to the public to an extent and with the entitlements mentioned in section 70 (1) within 1 year after the first issue of units to the public; and

(b) the start up units are the only units in the unit trust to be issued from and including the first issue to the public until the unit trust becomes a widely held unit trust (the
"start-up period" ).

(2) The commissioner may treat the unit trust as a widely held unit trust for the start-up period.

(3) However, if the start-up units are not issued in the way mentioned in subsection (1) (a) or are not the only units issued in the unit trust in the start-up period (the
"disqualifying circumstances" )—

(a) the trustee must, within 28 days after the disqualifying circumstances happen, give the commissioner notice about the disqualifying circumstances; and

(b) the unit trust is taken not to have been a widely held unit trust in the start-up period; and

(c) the commissioner must make an assessment for transfer duty for each trust acquisition or trust surrender in the start-up period as if the trust were not a widely held unit trust in the period; and

(d) the start date for the Administration Act , section 54 (4) , is 61 days after the relevant trust acquisition or trust surrender.