Commonwealth Consolidated Acts

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SOCIAL SECURITY ACT 1991 - SECT 1207Q

Controlled private companies

  (1)   For the purposes of this Part, a company is a controlled private company in relation to an individual if the company is a designated private company and:

  (a)   the individual passes the control test set out in subsection   (2); or

  (b)   the individual passes the source test set out in subsection   (3).

Control test

  (2)   For the purposes of this section, an individual passes the control test in relation to a company if:

  (a)   the aggregate of:

  (i)   the direct voting interests in the company that the individual holds; and

  (ii)   the direct voting interests in the company held by associates of the individual;

    is 50% or more; or

  (b)   the aggregate of:

  (i)   the direct control interests in the company that the individual holds; and

  (ii)   the direct control interests in the company held by associates of the individual;

    is 15% or more; or

  (c)   the company is sufficiently influenced by:

  (i)   the individual; or

  (ii)   an associate of the individual; or

  (iii)   2 or more entities covered by the preceding subparagraphs; or

  (d)   the individual (either alone or together with associates) is in a position to exercise control over the company.

Source test

  (3)   For the purposes of this section, an individual passes the source test in relation to a company if:

  (a)   the individual has transferred property or services to the company after 7.30 pm, by standard time in the Australian Capital Territory, on 9   May 2000; and

  (b)   the underlying transfer was made for no consideration or for a consideration less than the arm's length amount in relation to the underlying transfer.

No double counting

  (4)   In calculating the aggregate referred to in paragraph   (2)(a), a direct voting interest held because of subsection   1207R(2) is not to be counted under subparagraph   (2)(a)(i) to the extent to which it is calculated by reference to a direct voting interest in the company that is taken into account under subparagraph   (2)(a)(ii).

  (5)   In calculating the aggregate referred to in paragraph   (2)(b), a direct control interest held because of subsection   1207T(4) is not to be counted under subparagraph   (2)(b)(i) to the extent to which it is calculated by reference to a direct control interest in the company that is taken into account under subparagraph   (2)(b)(ii).


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