Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.355

50% stake test

  (1)   An entity controls (for value shifting purposes) a company if the entity, or the entity and its * associates between them:

  (a)   can exercise, or can control the exercise of, at least 50% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or

  (b)   have the right to receive (either directly, or indirectly through one or more interposed entities) at least 50% of any dividends that the company may pay; or

  (c)   have the right to receive (either directly, or indirectly through one or more interposed entities) at least 50% of any distribution of capital of the company.

40% stake test

  (2)   An entity also controls (for value shifting purposes) a company if the entity, or the entity and its * associates between them:

  (a)   can exercise, or can control the exercise of, at least 40% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or

  (b)   have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any dividends that the company may pay; or

  (c)   have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any distribution of capital of the company;

unless an entity (other than the first entity and its associates) either alone or together with its associates in fact controls the company.

Actual control test

  (3)   An entity also controls (for value shifting purposes) a company if the entity, either alone or together with its * associates, in fact controls the company.