DUTIES ACT 2000 - SECT 89J Re-purchase facilities—widely held trusts

DUTIES ACT 2000 - SECT 89J

    (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)     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 beneficially 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 definition of widely held trust in section 3(1) applies to the unit trust scheme as if a reference in paragraph (d) of that definition to 20% were a reference to 30%.

    (3)     However, if at the end of the 30-day period beginning on and including the day on which the redemption occurs, a unit holder, individually or together with any associated person, is beneficially entitled to more than 20% of the units in the unit trust scheme—

        (a)     the definition of widely held trust in section 3(1) is taken to have applied to the unit trust scheme during that period as if subsection (2) had not been enacted; and

        (b)     the Commissioner must determine whether any duty is chargeable under this Act as a result of the operation of paragraph (a) and if so, must assess that duty; and

        (c)     a tax default occurs for the purposes of the Taxation Administration Act 1997 if the whole of any duty assessed under paragraph (b) is not paid to the Commissioner within 30 days after liability for the duty arose.

S. 89K substituted by No. 38/2012 s. 5.