Document ID: chunk:federal_register_of_legislation:C2010C00261:clause:4_3
Version: federal_register_of_legislation:C2010C00261
Segment Type: clause
Provision Reference: sch 4 cl 3
Character Range: 38932–40758

3                              A *partnership                                                                  the direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936) that the first entity would hold in the other entity, if the assumptions in subsection (3) of this section were made

 (2) For the purposes of subsection (1):
 (a) apply sections 350 and 351 of the Income Tax Assessment Act 1936 as if those sections apply for the purposes of this Division rather than only for the purposes of Part X of that Act; and
 (b) do not apply subsections 350(6) and (7) and 351(3) and (4) of that Act.

 (3) For the purposes of item 3 of the table in subsection (1), assume that:
 (a) the *partnership is a company; and
 (b) the partners in the partnership are shareholders in the company; and
 (c) the total amount of assets or capital contributed to the partnership is the total paid‑up share capital of the company; and
 (d) a partner's right of distribution of capital, assets or profits on the dissolution of the partnership is a shareholder's right to distribution of capital or profits of the company on winding‑up; and
 (e) a partner's right of distribution of capital, assets or profits otherwise than on the dissolution of the partnership is a shareholder's right to distribution of capital or profits of the company otherwise than on winding‑up.

960‑195  Non‑portfolio interest test

  An interest held by an entity (the holding entity) in another entity (the test entity) passes the non‑portfolio interest test at a time if the sum of the *direct participation interests held by the holding entity and its *associates in the test entity at that time is 10% or more.

Part 3—Consequential amendments

Financial Corporations (Transfer of Assets and Liabilities) Act 1993