Income Tax Assessment Act 1997
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Hide history noteSECTION 727-355 Control (for value shifting purposes) of a company
50% stake test
727-355(1)
An entity controls (for value shifting purposes) a company if the entity, or the entity and its * associates between them:
(a) can exercise, or can control the exercise of, at least 50% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
(b) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 50% of any dividends that the company may pay; or
(c) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 50% of any distribution of capital of the company.
40% stake test
727-355(2)
An entity also controls (for value shifting purposes) a company if the entity, or the entity and its * associates between them:
(a) can exercise, or can control the exercise of, at least 40% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
(b) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any dividends that the company may pay; or
(c) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any distribution of capital of the company;
unless an entity (other than the first entity and its associates) either alone or together with its associates in fact controls the company.
Actual control test
727-355(3)
An entity also controls (for value shifting purposes) a company if the entity, either alone or together with its * associates, in fact controls the company.
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