89XDisqualifying circumstances for certain unit trust schemes

89X Disqualifying circumstances for certain unit trust schemes (1) For the purposes of this section, a ***disqualifying circumstance*** is— (a) a circumstance that causes a unit trust scheme that is registered under this Division to cease to meet the relevant criteria for registration; or (b) subject to subsection (2), the failure by a unit trust scheme that is registered under this Division to meet a condition of registration, or the contravention of a condition of registration by a unit trust scheme or the trustee of the scheme. (2) A failure or contravention referred to in subsection (1)(b) is not a disqualifying circumstance if the Commissioner so determines, being satisfied that the application of this section to the unit trust scheme in the particular case would not be just or reasonable. (3) If a disqualifying circumstance occurs in respect of a unit trust scheme— (a) the trustee of the unit trust scheme must give the Commissioner notice of the disqualifying circumstance within 28 days after it occurs; and (b) the unit trust scheme is taken to have been a private unit trust scheme from and including the relevant date; and (c) if an acquisition of an interest in the unit trust scheme that was made on or after the relevant date is a significant interest within the meaning of section 79(2)(a), it becomes a relevant acquisition; and (d) the Commissioner must make an assessment of duty chargeable under this Act as a result of the operation of paragraphs (b) and (c); and (e) a tax default occurs for the purposes of the **Taxation Administration Act 1997** if the whole of any duty assessed under paragraph (d) is not paid to the Commissioner within 30 days after liability for the duty arose. (4) The trustee of a unit trust scheme must not fail to comply with subsection (3)(a). Penalty: 10 penalty units. s. 89X(4) inserted by No. 13/2013 s. 56(3). (5) If— (a) a disqualifying circumstance occurs in relation to a unit trust scheme; and (b) the trustee of the unit trust scheme fails to comply with subsection (3)(a); and (c) duty is assessed under this Part as a result of the disqualifying circumstance— the trustee of the unit trust scheme is liable to pay to the Commissioner, by way of penalty, an amount equal to double the amount of duty assessed as a result of the disqualifying circumstance, less any amount of duty that the trustee or any other person did pay. (6) A penalty imposed by subsection (5) is in addition to any penalty imposed for contravention of subsection (4) by the trustee. (7) The Commissioner, in such circumstances as the Commissioner considers appropriate, may remit the penalty imposed by subsection (5) by any amount. (8) In this section— ***relevant date*** means— (a) if the disqualifying circumstance is a circumstance that causes a registered imminent wholesale unit trust scheme to cease to meet the criteria set out in section 89T(2)(a)—the date on which the 12 month period referred to in that section began; (b) in any other case—the date the disqualifying circumstance occurred. S. 89Y inserted by No. 38/2012 s. 5.