Income Tax Assessment Act 1997
PART 6-1 - CONCEPTS AND TOPICS
Division 975 - Concepts about companies
Subdivision 975-W - Wholly-owned groups of companies
SECTION 975-505 What is a 100% subsidiary?
975-505(1)
A company (the
subsidiary company
) is a
100% subsidiary
of another company (the
holding company
) if all the *shares in the subsidiary company are beneficially owned by:
(b)
one or more 100% subsidiaries of the holding company; or
(c)
the holding company and one or more 100% subsidiaries of the holding company.
975-505(2)
However, the subsidiary company is
not
a
100% subsidiary
of the holding company if a person is *in a position to affect rights, in relation to the subsidiary company, of:
(b)
a 100% subsidiary of the holding company.
975-505(3)
The subsidiary company is also not a
100% subsidiary
of the holding company if at some future time a person will be *in a position to affect rights as described in subsection (2).
975-505(4)
A company (other than the subsidiary company) is a
100% subsidiary
of the holding company if, and only if:
(a)
it is a 100% subsidiary of the holding company; or
(b)
it is a 100% subsidiary of a 100% subsidiary of the holding company;
because of any other application or applications of this section.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.