Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 768 - Foreign non-assessable income and gains  

Subdivision 768-G - Reduction in capital gains and losses arising from CGT events in relation to certain voting interests in active foreign companies  

Voting percentages in a company

SECTION 768-555   Indirect voting percentage in a company  

768-555(1)    
An entity's indirect voting percentage at a particular time in a company (the subsidiary company ) is worked out by multiplying:

(a) the entity's *direct voting percentage (if any) in another company (the intermediate company ) at that time;

by:

(b) the sum of:

(i) the intermediate company's direct voting percentage (if any) in the subsidiary company at that time; and

(ii) the intermediate company's indirect voting percentage (if any) in the subsidiary company at that time (as worked out under one or more other applications of this section).

768-555(2)    
If there is more than one intermediate company to which subsection (1) applies at that time, the entity's indirect voting percentage is the sum of the percentages worked out under subsection (1) in relation to each of those intermediate companies.