15Succession test

15 Succession test

(1) An entity satisfies the succession test in relation to resale royalty right on the commercial resale of an artistic work, if the entity satisfies: (a) criteria 1 and 2 (in subsections (2) and (3)); or (b) criteria 3 and 4 (in subsections (4) and (5)). Criterion 1 (2) The entity received its interest in the right by testamentary disposition, or in accordance with the rules of intestate succession, on the death of an individual. Criterion 2 (3) The entity is one of the following: (a) an individual with a beneficial interest in the right; (b) a charity or charitable institution with a beneficial interest in the right; (c) a community body with a beneficial interest in the right; (d) a person who holds an interest in the right in trust for: (i) an individual; or (ii) a charity or charitable institution; or (iii) a community body. Criterion 3 (4) The entity received its interest in the right on the winding up of a charity, charitable institution or a community body. Criterion 4 (5) The entity is a charity, charitable institution or a community body formed for substantially the same purposes as the body that was wound up.