Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_2:p4
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 4/6)
Character Range: 179721–182623

more; or
 (b) the following subparagraphs apply:
 (i) the entity (the controlling entity) and its associate entities hold a total of TC direct control interests that is 40% or more in the company, trust or partnership;
 (ii) no other entity or entities (except the controlling entity, its associate entities or entities including the controlling entity or its associate entities) control the company, trust or partnership; or
 (c) the entity (whether or not together with associate entities) controls the company, trust or partnership.

 (3) Paragraph (2)(b) does not apply if the *TC direct control interests mentioned in subparagraph (2)(b)(i) are held in a *corporate limited partnership.

Subdivision 820‑I—Associate entities

Guide to Subdivision 820‑I

820‑900  What this Subdivision is about

      This Subdivision sets out the meaning of various concepts about associate entities for the purposes of this Division.

Table of sections

820‑905 Associate entity
820‑910 Associate entity debt
820‑915 Associate entity equity
820‑920 Associate entity excess amount

[This is the end of the Guide.]

820‑905  Associate entity

Meaning of associate entity

 (1) An entity (the first entity) that is not an individual is an associate entity of another entity at a particular time if, at that time, the first entity is an *associate of that other entity and at least one of the following paragraphs applies:
 (a) that other entity holds an *associate interest of 50% or more in the first entity (see subsections (4) to (8));
 (b) the first entity is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of that other entity in relation to:
 (i) the distribution or retention of the first entity's profits; or
 (ii) the financial policies relating to the first entity's assets, *debt capital or *equity capital;
  whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed entities.
However, this subsection does not apply to the first entity in its capacity as the *responsible entity of a *registered scheme (see subsection (2A)).

 (2) An entity (the first entity) that is an individual is an associate entity of another entity at a particular time if, at that time:
 (a) the first entity is an *associate of that other entity; and
 (b) the first entity:
 (i) is accustomed or under an obligation (whether formal or informal); or
 (ii) might reasonably be expected;
  to act in accordance with the directions, instructions or wishes of that other entity in relation to the first entity's financial affairs, whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed entities.

 (2A) An entity (the first entity), in its capacity