Part 3Determination of asset attribution percentage

Part 3 Determination of asset attribution percentage

14 Purpose

This Part sets out decision-making principles with which the Commission must comply in making a determination, under subparagraph 52ZZJ(1)(b)(ii) or (2)(d)(ii) of the Act, that an attributable stakeholder’s asset attribution percentage, in relation to a company or a trust, is a specified percentage lower than 100%.

15 Application

1. This Part applies if, but for a determination by the Commission, the asset attribution percentage of the attributable stakeholder, in relation to the company or trust, would be 100%.
2. The Commission must consider the relationship between the individual and the company or trust, having regard to the circumstances mentioned in this Part.
3. In particular, the Commission must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine a percentage lower than 100% as the asset attribution percentage.

16 Circumstances affecting relationship with company or trust

1. The Commission must consider whether there are relevant circumstances that make it inappropriate for the individual to have an asset attribution percentage of 100%.

2. For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:

3. circumstances arising from the legal structure of the company or trust;

4. circumstances arising from the administrative arrangements of the company or trust;

5. whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust and, if so, the extent of that control.

17 Contribution to company or trust

If the individual has made a contribution to the company or trust, the Commission must consider the circumstances in which the contribution was made and, in particular:

1. the value of the contribution; and
2. the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and
3. the effect of the contribution on the financial position of the company or trust; and
4. if the individual received consideration for the contribution, the amount of consideration.

18 Past benefit from distributions by company or trust