Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:13_15:p2
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 13 cl 15 (pt 2/11)
Character Range: 111733–114614

membership interests
208‑35 Accountable partial interests
208‑40 Prescribed persons
208‑45 Persons who are taken to be prescribed persons
208‑50 Former exempting companies

208‑20  Exempting entities
  A *corporate tax entity is an exempting entity at a particular time if, at that time, the entity is effectively owned by prescribed persons.
Note: Prescribed persons are identified in sections 208‑40 and 208‑45.

208‑25  Effective ownership of entity by prescribed persons
 (1) An entity is effectively owned by prescribed persons at a particular time if:
 (a) at that time:
 (i) not less than 95% of the *accountable membership interests in the entity; or
 (ii) not less than 95% of the *accountable partial interests in the entity;
  are held by, or held indirectly for the benefit of, prescribed persons; or
 (b) paragraph (a) does not apply but it would nevertheless be reasonable to conclude that, at that time, the risks involved in, and the opportunities resulting from, holding accountable membership interests, or accountable partial interests, in the entity that are not held by, or directly or indirectly for the benefit of, prescribed persons are substantially borne by, or substantially accrue to, prescribed persons.
 (2) In deciding whether it would be reasonable to conclude as mentioned in paragraph (1)(b):
 (a) have regard to any *arrangement in respect of *membership interests (including unissued membership interests), or in respect of *partial interests, in the entity (including any derivatives held or issued in connection with those membership interests or partial interests) of which the entity is aware; but
 (b) do not have regard to risks involved in the ownership of membership interests, or partial interests, in the entity that are substantially borne by any person in the person's capacity as a secured creditor.
 (3) An entity has a partial interest in a *corporate tax entity if it has an interest in a *membership interest in the corporate tax entity.

208‑30  Accountable membership interests
 (1) The purpose of this section is to identify which *membership interests in an entity are relevant in determining whether the entity is effectively owned by prescribed persons.
 (2) A *membership interest in an entity is an accountable membership interest if it is not an excluded membership interest.
 (3) A *membership interest in an entity is an excluded membership interest if, having regard to:
 (a) the purposes for which the membership interest was issued; and
 (b) any special or limited rights connected with, arising from, or attached to:
 (i) the membership interest; or
 (ii) other membership interests in the entity held by the holder of the membership interest; or
 (iii) membership interests in the entity held by persons other than the holder of the membership interest; or
 (iv) interests in any of the above;
  including rights