Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 16/30)
Character Range: 7820094–7822778

if it referred to trusts rather than CFT's.
Note 1: Part X of the Income Tax Assessment Act 1936 defines company to exclude a company in the capacity of a trustee.
Note 2: The terms direct control interest and control tracing interest are relevant to working out associate‑inclusive control interests in a company: see sections 350, 351, 353, 354 and 355 of that Act.
Note 3: Under subsection 349(4) of that Act, if 2 or more entities would have a direct control interest or a control tracing interest in a company or trust equal to 100%, only one of them holds the interest.
Note 4: Subsections 350(6) and (7) of that Act deal with direct control interests in a company. They deal with interests held by Australian entities. Under subsection 355(1), certain entities are taken to hold a control tracing interest in a trust equal to 100%.
Note 5: Paragraphs (2)(d), (e) and (f) of this section are necessary because Part X of the Income Tax Assessment Act 1936 applies only to CFE's (which comprise CFC's, CFP's and CFT's).

Subdivision 975‑G—What is a company's share capital account?

Table of sections
975‑300 Meaning of share capital account

975‑300  Meaning of share capital account
 (1) A company's share capital account is:
 (a) an account that the company keeps of its share capital; or
 (b) any other account (whether or not called a share capital account) that satisfies the following conditions:
 (i) the account was created on or after 1 July 1998;
 (ii) the first amount credited to the account was an amount of share capital.
 (2) If a company has more than one account covered by subsection (1), the accounts are taken, for the purposes of this Act, to be a single account.
Note: Because the accounts are taken to be a single account (the combined share capital account), tainting of any of the accounts has the effect of tainting the combined share capital account.
 (3) However, if a company's *share capital account is *tainted, that account is taken not to be a share capital account for the purposes this Act, other than:
 (a) subsection 118‑20(6); and
 (b) Division 197; and
 (ba) paragraph 202‑45(e); and
 (c) the definition of paid‑up share capital in subsection 6(1) of the Income Tax Assessment Act 1936; and
 (d) subsection 44(1B) of the Income Tax Assessment Act 1936; and
 (f) subsection 159GZZZQ(5) of the Income Tax Assessment Act 1936.

Subdivision 975‑W—Wholly‑owned groups of companies

Table of sections
975‑500 Wholly‑owned groups
975‑505 What is a 100% subsidiary?

975‑500  Wholly‑owned groups
  Two companies are members of the same wholly‑owned group if:
 (a) one of the companies is a *100% subsidiary of the other company; or
 (b) each of the