(1) In this section ¾

}land~ has the same meaning as in section 76;

}scheme land~ means land held by a unit trustee in the unit trustee's capacity as trustee of a unit trust scheme.

(1a) A unit trustee may apply to the Commissioner in an approved form for registration of a unit trust scheme.

(1b) An application may be made whether or not the unit trust scheme has previously been registered under subsection (2).

(1c) An application for registration of a unit trust scheme as a pooled investment trust is to be accompanied by a statement by the unit trustee in an approved form of the unencumbered value of the interests in scheme land referred to in section 63AB(2)(f) and, if applicable, (g)(i).

(2) The Commissioner may register the unit trust scheme as a pooled investment trust or an equity trust with effect from the date of the application if ¾

(a) the Commissioner is satisfied that the unit trust scheme is eligible for registration under section 63AB(2) as a pooled investment trust or section 63AB(3) as an equity trust;

(ab) in the case of an application for registration of a unit trust scheme as a pooled investment trust ¾ the unit trust scheme is not to be treated as a sub-trust under subsection (2a); and

(b) the Commissioner is satisfied that registration is not being used and is not likely to be used as part of a scheme or arrangement with the collateral purpose of avoiding or reducing the duty that otherwise would be or might become payable.

(2a) For the purposes of subsection (2)(ab) and sections 63AC(2)(ab) and 63AD(8), a unit trust scheme is to be treated as a sub-trust if ¾

(a) the scheme land comprises only one parcel of land;

(b) a unit holder in the scheme participated directly or indirectly (otherwise than by means of the unit holder's subscription under the scheme) in the unit trustee's acquisition of the scheme land;

(c) a unit holder in the scheme states in a financial report, or other document, provided to its members that the unit holder has an interest in the scheme land;

(d) a unit holder in the scheme beneficially owns an interest in any land otherwise than as a unit holder in a unit trust scheme; or

(e) a unit holder in the scheme makes an offer to the public for subscriptions principally by reference to the scheme land and not to units in a unit trust scheme,

unless the Commissioner is satisfied that in the circumstances of a particular case it is not reasonable to treat the scheme as a sub-trust.

(3) For the purpose of being satisfied as to a matter referred to in subsection (2)(b), the Commissioner may take into account any matter that the Commissioner considers to be relevant.

(3a) Subject to this Part, registration of a unit trust scheme under subsection (2) has effect for a period of 3 years.

(4) The Commissioner shall advise the unit trustee whether or not he has registered the unit trust scheme as a pooled investment trust or an equity trust.

(4a) Subject to section 17 of the Taxation Administration Act 2003, if the Commissioner registers a unit trust scheme as a pooled investment trust or an equity trust the Commissioner shall make any reassessment necessary to give effect to that registration.

(5) If the Commissioner decides not to register a unit trust scheme as a pooled investment trust or an equity trust he must give the unit trustee reasons for his decision.

(6) If the Commissioner decides not to register a unit trust scheme as a pooled investment trust or an equity trust, the unit trustee may challenge the validity or correctness of that decision in accordance with Part 4 of the Taxation Administration Act 2003 as if the unit trustee were a taxpayer and the decision were a decision affecting the trustee's liability to pay duty.

[Section 63AA inserted by No. 36 of 2001 s. 27; amended by No. 2 of 2003 s. 33; No. 66 of 2003 s. 18.]