Income Tax Assessment Act 1936
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Hide history noteAn indirect control interest that an entity (in this section called the bottom entity ) holds in a company or trust at a particular time is calculated in accordance with this section.
352(2) [Interposed entity]An interposed entity is not to be taken into account in calculating an indirect control interest unless the entity is a CFE.
352(3) [One interposed entity]If there is only one entity interposed between the bottom entity and the company or trust, the indirect control interest is calculated by multiplying the control tracing interest that the bottom entity holds in the interposed entity by the control tracing interest that the interposed entity holds in the company or trust.
352(4) [2 interposed entities]If there are 2 entities interposed between the bottom entity and the company or trust, the indirect control interest is calculated:
(a) by multiplying the control tracing interest that the bottom entity holds in the first interposed entity by the control tracing interest that the first interposed entity holds in the second interposed entity; and
(b) by multiplying the result of the calculation referred to in paragraph (a) by the control tracing interest that the second interposed entity holds in the company or trust. 352(5) [3 or more interposed entities]
If there are 3 or more entities interposed between the bottom entity and the company or trust, the indirect control interest is calculated:
(a) by multiplying the control tracing interest that the bottom entity holds in the first interposed entity by the control tracing interest that the first interposed entity holds in the second interposed entity; and
(b) by multiplying the result of the calculation referred to in paragraph (a) by the control tracing interest that the second interposed entity holds in the third interposed entity;
and so on, ending with a multiplication by the control tracing interest that the last interposed entity holds in the company or trust.
352(6) [Entity interposed between 2 entities]For the purposes of this section, an entity (in this subsection called the second entity ) is interposed between 2 other entities (in this subsection called the first entity and the third entity respectively) if, and only if:
(a) the first entity has a control tracing interest in the second entity; and
(b) the second entity has a control tracing interest in the third entity.
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