Subject to section 207-128, 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) the ineligible entity or another entity has entered into an * arrangement as part of, or in association with:
(i) the distribution; or
(ii) if the distribution flows indirectly to the ineligible entity--the ineligible entity's * trust share amount in relation to the distribution; and
(b) because of the arrangement, the ineligible entity or another entity has acquired or will acquire (whether directly or indirectly) money or property, other than money or property comprising the distribution or the ineligible entity's trust share amount, from:
(i) the entity making the distribution; or
(ii) an entity through which the distribution flows indirectly to the ineligible entity; or
(iii) an * associate of any of those entities (other than the ineligible entity).