36BProperty passing to unitholders in unit trust schemes

36B Property passing to unitholders in unit trust schemes

(1) No duty is chargeable under this Chapter in respect of a transfer of dutiable property that is subject to a unit trust scheme (the principal scheme) to a unitholder in the scheme if—

(a) the duty (if any) charged by this Act in respect of the dutiable transaction that resulted in the dutiable property becoming subject to the principal scheme has been paid or the Commissioner is satisfied that the duty will be paid; and

(b) the unitholder was a unitholder at the relevant time; and

(c) the transfer is in accordance with subsection (2); and

(d) the dutiable value of the property transferred as a proportion of the net assets of the principal scheme does not exceed the value of that proportion of the net assets of the principal scheme represented by the unitholding of the unitholder in the principal scheme at the relevant time; and

(e) as a result of the transfer, the value of the unitholder's unitholding in the principal scheme is reduced by the same amount as the dutiable value of the property transferred; and

(f) the Commissioner is satisfied that any duty charged as a result of the occurrence of a dutiable transaction referred to in section 7(1)(b)(vi) in relation to the property has been paid; and

(g) the Commissioner is satisfied that the transfer is not part of a sale or other arrangement under which there exists any consideration for the transfer.

(2) The transfer must be—

(a) to the unitholder absolutely, if the unitholder is—

(i) a natural person; or

(ii) a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time; or

(b) to the unitholder as trustee of a fixed trust all the beneficiaries of which are—

(i) natural persons who were beneficiaries of that fixed trust at the relevant time; or

(ii) a corporation all the shareholders of which are natural persons who were shareholders of the corporation at the relevant time—

being natural persons or a corporation that do not hold their interests in the fixed trust as trustee of another trust; or

(c) to the unitholder as trustee of a discretionary trust of which all the beneficiaries are—

(i) natural persons who were relevant beneficiaries of that discretionary trust at the relevant time or who became beneficiaries after the relevant time by reason of—

(A) becoming a spouse or domestic partner of a beneficiary within a class of beneficiary described in the discretionary trust; or