Capital means an equity interest of 10% or greater.
International related parties means persons, including permanent establishments, who are parties to international dealings that can be subject to Division 13 Part III of the ITAA 1936 and/or the business profits article or associated enterprises article of a relevant double tax agreement. The term includes the following:
- any overseas entity or person who participates directly or indirectly in your management, control or capital
- any overseas entity or person in respect of which you participate directly or indirectly in the management, control or capital
- any overseas entity or person in respect of which persons who participate directly or indirectly in its management, control or capital are the same persons who participate directly or indirectly in your management, control or capital
- a permanent establishment and its head office
- two permanent establishments of the same entity or person.
Participate(s) includes a right of participation, the exercise of which is contingent on an agreed event occurring.
Person has the same meaning as in subsection 6(1) of the ITAA 1936 and section 995-1 of the ITAA 1997.
Related-party international dealings means international transactions, agreements or arrangements between related parties, between a permanent establishment and its head office or between two permanent establishments of the same entity or person. The term includes all transactions between an Australian resident and international related parties.