89JRe-purchase facilities—widely held trusts

89J Re-purchase facilities—widely held trusts (a) the trustee of a unit trust scheme that is a widely held trust redeems any units in the trust; and (b) as a result of the redemption, the scheme would, but for this section, cease to be a widely held trust because a unit holder, individually or together with any associated person, is beneficially entitled to more than 20% of the units in the trust. (2) For a period of 30 days beginning on and including the day on which the redemption occurs, the definition of ***widely held trust*** in section 3(1) applies to the unit trust scheme as if a reference in paragraph (d) of that definition to 20% were a reference to 30%. (3) However, if at the end of the 30-day period beginning on and including the day on which the redemption occurs, a unit holder, individually or together with any associated person, is beneficially entitled to more than 20% of the units in the unit trust scheme— (a) the definition of ***widely held trust*** in section 3(1) is taken to have applied to the unit trust scheme during that period as if subsection (2) had not been enacted; and (b) the Commissioner must determine whether any duty is chargeable under this Act as a result of the operation of paragraph (a) and if so, must assess that duty; and (c) a tax default occurs for the purposes of the **Taxation Administration Act 1997** if the whole of any duty assessed under paragraph (b) is not paid to the Commissioner within 30 days after liability for the duty arose. S. 89K substituted by No. 38/2012 s. 5.