Income Tax Assessment Act 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 960 - General  

Subdivision 960-GP - Participation interests in entities  

SECTION 960-185   Indirect participation interest  

960-185(1)    
Work out the indirect participation interest that an entity (the holding entity ) holds at a particular time in another entity (the test entity ) by multiplying:

(a) the holding entity's *direct participation interest (if any) in another entity (the intermediate entity ) at that time;

by:

(b) the sum of:

(i) the intermediate entity's direct participation interest (if any) in the test entity at that time; and

(ii) the intermediate entity's indirect participation interest (if any) in the test entity at that time (as worked out under one or more other applications of this section).

960-185(2)    
If there is more than one intermediate entity to which paragraph (1)(a) applies at that time, the holding entity's indirect participation interest is the sum of the percentages worked out under subsection (1) in relation to each of those intermediate entities.