INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19B - Share value shifting arrangements  

SECTION 160ZZRN   CONTROLLER OF A COMPANY ETC.  

160ZZRN(1)   ``Controller''.  

A taxpayer is a ``controller'' of a company if:

(a) the taxpayer has an associate-inclusive control interest in the company of not less than 50%; or

(b) both the following subparagraphs apply:

(i) the taxpayer has an associate-inclusive control interest in the company of not less than 40%;

(ii) the company is not controlled by a group of entities other than a group consisting of or including the taxpayer or any of the taxpayer's associates; or

(c) the taxpayer controls the company, either alone or together with an associate or associates.

160ZZRN(2)   ``Associate'', ``entity'' and ``group''.  

The expressions ``associate'' , ``entity'' and ``group'' have the same respective meanings as in Part X.

160ZZRN(3)   ``Associate-inclusive control interest''.  

Subject to the modifications in subsection (4), whether a taxpayer has an associate-inclusive control interest of not less than 50%, or not less than 40%, in a company is to be determined by applying Division 3 of Part X.

160ZZRN(4)   Modifications of applied provisions.  

The modifications are as follows:

(a) that Division 3 of Part X applies for the purpose of determining the associate-inclusive control interests in a company whether or not in the capacity of trustee;

Note:

The expression ``company'' in Part X does not include a company in the capacity of trustee.

(b) that the purpose of making the determination is one of the purposes for which subsection 349(4) is to be applied;

(c) that subsections 350(6) and (7) and 355(1) do not apply;

(d) that the reference in subsection 352(2) to a CFE is a reference to:

(i) a company of which the taxpayer or an associate is a controller; or

(ii) a partnership; or

(iii) a trust;

(e) that references in section 354 to a CFP are references to any partnership;

(f) that references in section 355 to a CFT are references to any trust.