16Request to eliminate undistributed amount

16 Request to eliminate undistributed amount

(1) Where:

(a) in relation to a sale or sales of shares under a scheme:

(i) a primary taxable amount exists, or primary taxable amounts exist, in relation to a person (in this section referred to as the relevant person) or each of 2 or more persons (in this section referred to as the relevant persons) in relation to an amount of undistributed profits tax payable in relation to a year of income by a company (in this section referred to as the relevant company); or

(ii) primary taxable amounts exist in relation to a person (in this section also referred to as the relevant person) or each of 2 or more persons (in this section also referred to as the relevant persons) in relation to amounts of undistributed profits tax payable in relation to 2 or more years of income by a company (in this section also referred to as the relevant company); and

(b) an assessment of undistributed profits tax has been made in relation to the relevant company in relation to each year of income, being the year of income in which the last sale time occurred or a preceding year of income, in relation to which there is an undistributed amount in relation to the company;

a request that this section should apply, in relation to that sale or those sales of shares, in relation to the relevant company may be made by:

(c) if, in the opinion of the Commissioner, it is reasonably practicable for the request to be made by a majority of the persons who constituted the board of directors of the relevant company immediately before the last sale time—a majority of those persons; or

(d) in any other case—the relevant person, or the relevant persons together, as the case may be.

(2) A request under subsection (1) shall:

(a) be in writing signed by the person or each of the persons, as the case may be, making the request; and

(b) be sent to or lodged with the Commissioner.

(3) On receipt of a request under subsection (1), the Commissioner may grant the request or he may refuse the request. (4) In deciding whether to grant or refuse the request, the Commissioner shall have regard to:

(a) the likelihood that any tax that may become payable by reason of the operation of this section in relation to the request will be paid; and

(b) any other matters that he considers relevant.

(5) Where a request is made under subsection (1), in relation to a sale of shares under a scheme, in relation to the relevant company and the request is granted by the Commissioner:

(a) the relevant company shall, for the purposes of Division 7 of Part III of the Assessment Act, be deemed to have made a sufficient distribution in relation to each year of income to which paragraph (1)(a) applies;