14No double counting if ordinary income significantly diminished

14 No double counting if ordinary income significantly diminished

(1) This section applies if:

(a) a company or trust makes a distribution to an individual who is an attributable stakeholder of the company or trust; and

(b) the individual would, but for this section, be taken to receive an amount of ordinary income over a period of 12 months in accordance with section 46A of the Act; and

(c) the ordinary income of the individual derived from the company or trust during an attribution period has ceased, or is significantly diminished, because the company or trust:

(i) has been wound-up or otherwise ceased to exist; or

(ii) has been subject to circumstances adversely affecting its profitability.

(2) For paragraphs 52ZZL(1)(d) and (e) and (2)(d) and (e) of the Act, the Commission must consider:

(a) whether, in all the circumstances, the application of section 46A of the Act would be unfair or unreasonable in relation to the individual; and

(b) if section 46A applies unfairly or unreasonably in relation to the individual, determining that the ordinary income of the individual does not include the whole or part of the amount or value distributed to the individual.