35Cancellation of units — false statement

35 Cancellation of units — false statement

(a) before a payment right is granted, an entity makes a false statement to a person exercising powers, or performing functions under or in connection with Part 2 of Schedule 2 to the Act or the scheme; and

(b) a payment right is granted because of the making of the false statement.

(2) If this subsection applies, the DAA may cancel all of the units in the payment right.

(a) before a payment right is granted, an entity makes a false statement to a person exercising powers, or performing functions under or in connection with Part 2 of Schedule 2 to the Act or the scheme; and

(b) as a result of action taken relying on the false statement, the face value of the payment right exceeds the amount that would have been the face value if the false statement had not been made.

(4) If this subsection applies, the DAA may cancel the number of units in the payment right worked out by:

(a) dividing the number of whole dollars in the amount of the excess by 32; and

(b) if the result of the division is not a whole number — rounding down to the nearest whole number (treating zero as a whole number).

(5) In this section:

false statement has the same meaning as in clause 50 of Schedule 2 to the Act.

Note If a unit is cancelled under this section, Schedule 2 to the Act and the scheme have effect as if the unit had never existed: see subclause 50 (2) of Schedule 2 to the Act.