Groups arising from tracing of interests in corporations
73 Groups arising from tracing of interests in corporations
An entity and a corporation form part of a group if the entity has a controlling interest in the corporation.
Note
Section 79 (Exclusion of persons from groups) allows the Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.
For the purposes of this section, an entity has a controlling interest in a corporation if the corporation has share capital and—
the entity has a direct interest in the corporation and the value of that direct interest exceeds 50%; or
the entity has an indirect interest in the corporation and the value of that indirect interest exceeds 50%; or
the entity has an aggregate interest in the corporation and the value of the aggregate interest exceeds 50%.
Division 3 applies for the purposes of the interpretation of this section.
Note
Division 3 sets out the manner for determining whether an entity has a direct interest, indirect interest or aggregate interest in a corporation, and the value of such an interest.
In this section—
associated person means a person who is associated with another person in accordance with any of the following provisions—
persons are associated persons if they are related persons;
natural persons are associated persons if they are partners in a partnership;
private companies are associated persons if common shareholders have a majority interest in each private company;
trustees are associated persons if any person is a beneficiary common to the trusts (not including a public unit trust scheme) of which they are trustees;
a private company and a trustee are associated persons if a related body corporate of the company (within the meaning of the Corporations Act) is a beneficiary of the trust (not including a public unit trust scheme) of which the trustee is a trustee;
S. 73(4) def. of domestic partner substituted by No. 12/2008 s. 73(1)(Sch. 1 item 45.1), amended by No. 4/2009 s. 37(Sch. 1 item 19.1), repealed by 17/2019 s. 51(1).
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entity means—
a person; or
2 or more persons who are associated persons (as defined in this section);
S. 73(4) def. of private company amended by Nos 29/2011 s. 3(Sch. 1 item 66.1), 28/2011 s. 39.
private company means a company that is not limited by shares, or whose shares are not quoted on the ASX or any exchange of the World Federation of Exchanges;
related person means a person who is related to another person in accordance with any of the following provisions—
natural persons are related persons if—
one is the spouse or domestic partner of the other; or
the relationship between them is that of parent and child, brothers, sisters, or brother and sister;
private companies are related persons if they are related bodies corporate within the meaning of the Corporations Act;
a natural person and a private company are related persons if the natural person is a majority shareholder or director of the company or of another private company that is a related body corporate of the company within the meaning of the Corporations Act;
a natural person and a trustee are related persons if the natural person is a beneficiary of the trust (not being a public unit trust scheme) of which the trustee is a trustee;
a private company and a trustee are related persons if the company, or a majority shareholder or director of the company, is a beneficiary of the trust (not being a public unit trust scheme) of which the trustee is a trustee.
S. 73(5) substituted by No. 12/2008 s. 73(1)(Sch. 1 item 45.2), repealed by 17/2019 s. 51(2).
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S. 73(5)(a) amended by No. 4/2009 s. 37(Sch. 1 item 19.2(a)).
registered domestic relationship has the same meaning as in the Relationships Act 2008; and
S. 73(5)(b) amended by No. 4/2009 s. 37(Sch. 1 item 19.2(b)).
in determining whether persons who are not in a registered domestic relationship are domestic partners of each other, all the circumstances of their relationship are to be taken into account, including any one or more of the matters referred to in section 35(2) of the Relationships Act 2008 as may be relevant in a particular case.
S. 74 substituted by No. 31/2008 s. 22.
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