INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 1 - Preliminary  

Subdivision B - Interpretation  

SECTION 160G   RELATED COMPANIES  

160G(1)   [Circumstances in which companies related]  

For the purposes of this Part, a company shall be taken to be related to another company if:

(a) one of the companies is a subsidiary of the other company; or

(b) each of the companies is a subsidiary of the same company.

160G(2)   [Subsidiary]  

For the purposes of this section, a company (in this subsection referred to as the ``subsidiary company'' ) shall be taken to be the subsidiary of another company (in this subsection referred to as the ``holding company'' ) if:

(a) all the shares in the subsidiary company are beneficially owned by:

(i) the holding company;

(ii) a company that is, or two or more companies each of which is, a subsidiary of the holding company; or

(iii) the holding company and a company that is, or two or more companies each of which is, a subsidiary of the holding company; and

(b) no person is in a position to affect rights of the holding company or of a subsidiary of the holding company in relation to the subsidiary company.

160G(3)   [Sub-subsidiaries]  

For the purposes of this section, where a company is a subsidiary of another company (including a company that is such a subsidiary by virtue of another application or other applications of this subsection), every company that is a subsidiary of the first-mentioned company shall be taken to be a subsidiary of that other company.

160G(4)   [Position to affect rights]  

For the purposes of subsection (2), a person shall be taken to be in a position to affect any rights of a company in relation to another company if that person has a right, power or option (whether by virtue of any provision in the constituent document of either of those companies, by virtue of any agreement or otherwise) to acquire those rights or do an act or thing that would prevent the first-mentioned company from exercising those rights for its own benefit or receiving any benefits accruing by reason of those rights.

160G(5)   [``agreement'']  

In subsection (4), ``agreement'' means an agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.