New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 157AH

157AH Consequences of disqualifying circumstance

(1) When a disqualifying circumstance occurs in relation to a unit trust scheme that is registered--

(a) the unit trust scheme is taken to have been a private unit trust scheme from the beginning of the relevant day, and

(b) the acquisition of a significant interest in the unit trust scheme made on or after the relevant day is a relevant acquisition, and

(c) the Chief Commissioner must make an assessment of duty chargeable under this Act as a result of the operation of paragraphs (a) and (b), and

(d) a tax default occurs for the purposes of the Taxation Administration Act 1996 if the whole of any duty assessed under paragraph (c) is not paid within 30 days after the liability to pay the duty arises.

(2) However, this section does not apply if the Chief Commissioner is satisfied that the application of this section to the scheme in the circumstances would not be just or reasonable.

(3) In this section--

"relevant day" , for a unit trust scheme that is registered, means--

(a) the day the disqualifying circumstance occurred, or

(b) the day on which registration of the scheme commenced if--

(i) the scheme is an imminent wholesale unit trust scheme, and

(ii) the disqualifying circumstance means the scheme will not be a wholesale unit trust scheme within 12 months after the day on which the first units in the scheme are issued to a qualified investor.