89KRe-purchase facilities—wholesale unit trust schemes

89K Re-purchase facilities—wholesale unit trust schemes (a) the trustee of a unit trust scheme that is registered under section 89S as a wholesale unit trust scheme redeems any units in the trust; and (b) as a result of the redemption, the scheme would, but for this section, cease to be registered under section 89S as a wholesale unit trust scheme because either of the following applies— (i) less than 70% of the units in the scheme are held by qualified investors; (ii) a qualified investor, either alone or together with associated persons, holds 50% or more of the units in the scheme. (2) For a period of 30 days beginning on and including the day on which the redemption occurs, the criteria for registration as a wholesale unit trust scheme in section 89S(2) apply to the wholesale unit trust scheme as if— (a) a reference in paragraph (c) to 70% were a reference to 50%; and (b) a reference in paragraph (d) to 50% were a reference to 70%. (3) However, if at the end of the 30-day period beginning on and including the day on which the redemption occurs, either of subsection (1)(b)(i) or (ii) applies— (a) section 89S(2) is taken to have applied to the wholesale 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. Division 5—Tax avoidance schemes S. 89L substituted by No. 38/2012 s. 5.