Payroll Tax Act 2007

An entity has an aggregate interest in a corporation if—

the entity has a direct interest and one or more indirect interests in the corporation, or

the entity has more than one indirect interest in the corporation.

The value of the aggregate interest of an entity in a corporation is the sum of the following—

the value of the direct interest (if any) of the entity in the corporation,

the value of each indirect interest of the entity in the corporation.

For example—

an entity has a direct interest (with a value of 40%) in corporation B,

the entity also has a direct interest (with a value of 25%) in corporation A, which in turn has a direct interest (with a value of 60%) in corporation B. Accordingly, the entity also has an indirect interest in corporation B with a value of 15% (that is, 25% × 60%),

the value of the entity’s aggregate interest in corporation B is the sum of the direct interest (40%) and the indirect interest (15%), which is 55%,

accordingly, in this example, the entity has a controlling interest in corporation B (within the meaning of section 73 (Groups arising from tracing of interests in corporations)).