Div 18 repealed by No 143 of 2007 , s 3 and Sch 1 item 64, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A .

Div 18 substituted by No 51 of 1986.

Div 18 amended by No 108 of 1981, No 87 of 1978, No 117 and No 80 of 1975, No 126 of 1974, No 164 and No 51 of 1973, No 47 of 1972, No 85 and No 76 of 1967, No 50 of 1966, No 143 of 1965, No 110 of 1964 and No 94 of 1961.

S 160AFB repealed by No 143 of 2007 , s 3 and Sch 1 item 64, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A . S 160AFB formerly read:

SECTION 160AFB RELATED FOREIGN COMPANIES  
160AFB(1)
Where one or more of the following paragraphs apply:

(a) an Australian company has a voting interest in a foreign company amounting to at least 10% of the voting power of the foreign company;

(b) that foreign company has a voting interest in another foreign company amounting to at least 10% of the voting power of that other foreign company;

(c) that other foreign company is similarly connected with a further foreign company, or a succession of further similarly connected foreign companies,

each of those companies is, for the purposes of this section, a member of a group of companies.

160AFB(2)
Where an Australian company:

(a) is a member of a group of companies; and

(b) has (either directly or through one or more companies, whether members of the group or not) a voting interest amounting to at least 5% of the voting power of a foreign company that is a member of the group,

the foreign company is, for the purposes of this Division, related to the Australian company.

160AFB(3)
For the purposes of paragraph (2)(b), where a company has a voting interest in a second company that has a voting interest in a third company (including a voting interest held by the second company by virtue of any other application or applications of this subsection), the first company shall be deemed to have a voting interest in the third company (in addition to any other voting interest) of an amount ascertained in accordance with the formula:

AB C

where:

A is the amount of the voting interest of the first company in the second company;

B is the amount of the voting interest of the second company in the third company; and

C is the amount of the voting power of the second company.

160AFB(4)
For the purposes of this section, a company shall be taken to have a voting interest in another company if:

(a) the first-mentioned company is the beneficial owner of shares (other than eligible finance shares or widely distributed finance shares within the meaning of Part X ) in the other company that carry the right to exercise any of the voting power in the other company; and

(b) there is no arrangement in force at the relevant time by virtue of which any person is in a position, or may become in a position, to affect that right,

and the extent of the voting interest shall be taken to be the total number of votes that, by virtue of that right, can be cast on a poll at, or arising out of, a general meeting of the other company as regards all questions that could be submitted to such a poll.

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History

S 160AFB(4)(a) amended by No 174 of 1997.

160AFB(5)
For the purposes of paragraph (4)(b), a person shall be taken to be in a position to affect a right of a company if that person has a right, power or option (whether by virtue of any provision in the constituent document of any company or by virtue of any agreement or instrument or otherwise) to acquire that right or do an act or thing that would prevent the first-mentioned company from exercising that right or receiving any benefits accruing by reason of that right.

160AFB(5A)
Despite paragraph (4)(b) and subsection (5), in determining for the purposes of this section:

(a) whether a company has a voting interest in another company; and

(b) the extent of that interest;

any appointment of a liquidator in respect of the other company is to be disregarded.

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History

S 160AFB(5A) inserted by No 76 of 1996.

160AFB(6)
For the purposes of this section, the voting power in a company is the maximum number of votes that can be cast on a poll at, or arising out of, a general meeting of a company as regards all questions that can be submitted to such a poll.

160AFB(7)
In this section, ``arrangement'' includes:

(a) any agreement, arrangement, understanding, promise or undertaking, whether expressed or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and

(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.