Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 207.122

    This section applies to an entity (the ineligible entity ) to whom a * franked distribution is made, or * flows indirectly under subsection   207 - 50(3) or (4), if:

  (a)   one of the following is in the form of property other than money:

  (i)   if the distribution is made to the ineligible entity--all or part of the distribution;

  (ii)   if the distribution flows indirectly to the ineligible entity through the trustee of a trust under subsection   207 - 50(3) or (4)--all or a part of a distribution (the trust distribution ) made by the trustee of the trust that relates to the ineligible entity's * trust share amount in relation to the franked distribution; and

  (b)   the terms and conditions on which the franked distribution or trust distribution is made are such that the ineligible entity:

  (i)   does not receive immediate custody and control of the property; or

  (ii)   does not have the unconditional right to retain custody and control of the property in perpetuity; or

  (iii)   does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property.