Income Tax Assessment Act 1936
View history note
Hide history noteDiv 1A repealed by No 53 of 2015, s 3 and Sch 1 item 1, applicable in relation to the 2016-17 income year and later income years.
Division 1A comprising s 24B to s 24N inserted by No 164 of 1973.
(Repealed by No 53 of 2015)
S 24D repealed by No 53 of 2015, s 3 and Sch 1 item 1, applicable in relation to the 2016-17 income year and later income years. S 24D formerly read:
S 24D(1) amended by No 108 of 1981. S 24D(4) amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011. S 24D(4) amended by No 108 of 1981. Section 960-255 of the
Income Tax Assessment Act 1997
may be relevant to determining family relationships for the purposes of subsection (7).
SECTION 24D TERRITORY COMPANY
24D(1)
Subject to this section, a company is, for the purposes of this Division, a Territory company in relation to the year of income if, and only if:
(a)
the company was incorporated in a prescribed Territory;
(b)
at all times during the year of income the company was managed and controlled wholly and exclusively in that Territory and was so managed and controlled by a person who was a Territory resident or by persons who were Territory residents;
(c)
at no time during the year of income was a shareholding interest in the company held by a person (not being a company) who was not a Territory resident;
(d)
at no time during the year of income was a person, or were 2 or more persons, in a position to affect any rights in connexion with the company of the holder of a shareholding interest in the company; and
(e)
no agreement was entered into before or during the year of income by virtue of which a person or persons would be in a position after the year of income to affect any rights in connexion with the company of the holder of a shareholding interest in the company.
24D(2)
For the purposes of this section, a person shall be deemed to have held a shareholding interest in a company at a particular time if at that time:
(a)
in the case of a company having a share capital
-
the person was beneficially entitled to, or to an interest in, any shares in the company (whether or not the whole or any part of the legal ownership of the shares was vested in the person); or
(b)
in the case of a company limited by guarantee or limited by both shares and guarantee
-
the person was a member of the company or had a beneficial interest in any right or interest of a member of the company in or in relation to the company.
24D(3)
For the purposes of this section, where at any time a person held a shareholding interest in a company and at that time that company held a shareholding interest in another company (including a shareholding interest that the first-mentioned company is deemed to have held by another application or other applications of this subsection), that person shall be deemed to have held at that time a shareholding interest in that other company.
24D(4)
For the purposes of paragraphs (1)(d) and (e), a person or persons shall be taken to have been, or to be, in a position at a particular time to affect rights in connexion with a company of the holder of a shareholding interest in the company if at that time that person had or has, or those persons had or have, a right, power or option (whether by virtue of any provision of the constituent document of the company or of any other company or by virtue of any agreement or instrument or otherwise) to do any act or thing that would divest the holder of that shareholding interest of all or any of those rights, to reduce the extent of all or any of those rights, to specify the manner in which all or any of those rights were or are to be exercised or to do any act or thing that would prevent the holder of that shareholding interest from exercising all or any of those rights for that holder
'
s own benefit or receiving any benefits accruing by reason of the existence of all or any of those rights.
24D(5)
A reference in subsection (4) to the doing of any act or thing that would reduce the extent of any rights in connexion with a company of the holder of a shareholding interest in the company includes a reference to the doing of any act or thing that would reduce the proportion that those rights bear to the total number of the rights of the same kind in connexion with the company of all the holders of shareholding interests in the company.
24D(6)
A company that would, apart from this subsection, be a Territory company for the purposes of this Division in relation to the year of income shall be deemed not to be a Territory company for the purposes of this Division in relation to the year of income if the affairs or business operations of the company were to any extent managed or conducted in the year of income in the interests of persons other than the holders of shareholding interests in the company or are likely to be so managed or conducted in a later year of income.
24D(7)
In determining for the purposes of this section whether the affairs or business operations of a company were, or are likely to be, managed or conducted to any extent in the interests of persons other than the holders of shareholding interests in the company, regard shall be had to any act or thing done, or likely to be done, in the course of the management or conduct of those affairs or operations, irrespective of the purpose or purposes for which that act or thing was done, or is likely to be done, and notwithstanding that the doing of that act or thing took place, or is likely to take place, in the course of ordinary family or commercial dealing.
Note:
S 24D(7) amended by No 144 of 2008, s 3 and Sch 14 item 8, applicable in relation to the 2009-2010 year of income and later years of income.
24D(8)
Where, but for this subsection, a company would not be a Territory company for the purposes of this Division in relation to a year of income by reason of a non-compliance of a temporary nature with the requirements of paragraph (1)(b) or (c), the Commissioner may disregard that non-compliance.
24D(9)
Where, but for this subsection, a company would not be a Territory company for the purposes of this Division in relation to a year of income by reason of a non-compliance with paragraph (1)(d) or (e) or by reason of subsection (6) but the Commissioner is of the opinion that, having regard to the general effect of the provisions of this section and to special circumstances that exist in relation to the company, it would be inappropriate not to regard the company as a Territory company in relation to that year of income, the Commissioner may regard the company as a Territory company for the purposes of this Division in relation to that year of income.
S 24D(9) amended by No 108 of 1981.
S 24D inserted by No 164 of 1973.
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