Taxation Administration (Private Ancillary Fund) Guidelines 2019
14Trustee liability
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14 Trustee liability
The governing rules of a *private ancillary fund must prohibit the fund from indemnifying the trustee, or an employee, officer or *agent of the trustee, for a loss or liability attributable to: (a) a deliberate act or omission known by the trustee, employee, officer or agent to be a breach of trust; or (b) dishonesty of the trustee, employee, officer or agent; or (c) gross negligence or recklessness of the trustee, employee, officer or agent.
Note: An administrative penalty under section 426‑120 in Schedule 1 to the Act cannot be reimbursed from the fund, see subsection 426‑120(4) in Schedule 1 to the Act.