Pay-roll Tax Assessment Act 2002

An entity has an indirect interest in a corporation if the corporation is linked to another corporation (the directly controlled corporation) in which the entity has a direct interest.

A corporation is linked to a directly controlled corporation if the corporation is part of a chain of corporations —

that starts with the directly controlled corporation; and

in which a link in the chain is formed if a corporation has a direct interest in the next corporation in the chain.

The value of the indirect interest of an entity in a corporation (an indirectly controlled corporation) that is linked to a directly controlled corporation is calculated by multiplying together the following —

the value of the direct interest of the entity in the directly controlled corporation;

the value of each direct interest that forms a link in the chain of corporations by which the indirectly controlled corporation is linked to the directly controlled corporation.

If an entity has more than one indirect interest in a corporation, the value of those interests is worked out under section 35D.