Taxation Laws Amendment Act (No. 2) 1995 (169 of 1995)

Schedule 6   SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

Part 2   ACQUISITION OF ASSETS FROM MEMBERS OF SUPERANNUATION FUNDS

9   Section 66

Add at the end:

Business carried on by a body corporate directly or indirectly

controlled by a person

"(6) For the purposes of the application to a particular person of

the definitions of business real property and exempt business real

property in subsection (5), if:

(a) a business is carried on by a body corporate; and

(b) the aggregate of the following is more than 50%:

(i) the direct control interests in the body corporate held by the

person; and

(ii) the direct control interests in the body corporate held by

close associates of the person;

the person is taken to carry on that business instead of the body

corporate.

Close associates

"(7) For the purposes of this section, each of the following is a

close associate of a particular person:

(a) the spouse of the person;

(b) a child of the person;

(c) a body corporate, where the aggregate of the following is 100%:

(i) the direct control interests in the body corporate held by the

person; and

(ii) the direct control interests in the body corporate held by the

spouse of the person; and

(iii) the direct control interests in the body corporate held by a

child or the children of the person;

(d) the trustee of a trust, where each person who benefits, or is

capable (whether by the exercise of a power of appointment or

otherwise) of benefiting, under the trust is covered by one of the

following subparagraphs:

(i) the person;

(ii) the spouse of the person;

(iii) a child of the person.

Direct control interests in a body corporate

"(8) For the purposes of this section, to work out the direct

control interest of a person in a body corporate:

(a) identify the maximum number of votes that might be cast at a

general meeting of the body corporate; and

(b) identify the percentage of that maximum number that is

controlled by the person.

That percentage is the direct control interest of the person in the

body corporate.".