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)).