Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 5/34)
Character Range: 5089275–5091845

may provide for different calculation of annual turnover
 (6) The regulations may provide that an entity's *annual turnover for an income year is to be calculated in a different way, but only so that it would be less than the amount worked out under this section.

328‑125  Meaning of connected with an entity
 (1) An entity is connected with another entity if:
 (a) either entity controls the other entity in a way described in this section; or
 (b) both entities are controlled in a way described in this section by the same third entity.
Note 1: See Subdivision 106‑B if a CGT asset of yours is vested in a trustee in bankruptcy or a liquidator.
Note 2: See Subdivision 106‑C if you are absolutely entitled to a CGT asset as against the trustee of a trust.
Note 3: See Subdivision 106‑D if you provided security over an asset to another entity.

Direct control of an entity other than a discretionary trust
 (2) An entity (the first entity) controls another entity if the first entity, its *affiliates, or the first entity together with its affiliates:
 (a) except if the other entity is a discretionary trust—own, or have the right to acquire the ownership of, interests in the other entity that carry between them the right to receive a percentage (the control percentage) that is at least 40% of:
 (i) any distribution of income by the other entity; or
 (ii) if the other entity is a partnership—the net income of the partnership; or
 (iii) any distribution of capital by the other entity; or
 (b) if the other entity is a company—own, or have the right to acquire the ownership of, *equity interests in the company that carry between them the right to exercise, or control the exercise of, a percentage (the control percentage) that is at least 40% of the voting power in the company.

Direct control of a discretionary trust
 (3) An entity (the first entity) controls a discretionary trust if a trustee of the trust acts, or could reasonably be expected to act, in accordance with the directions or wishes of the first entity, its *affiliates, or the first entity together with its affiliates.
 (4) An entity (the first entity) controls a discretionary trust for an income year if, for any of the 4 income years before that year:
 (a) the trustee of the trust paid to, or applied for the benefit of:
 (i) the first entity; or
 (ii) any of the first entity's *affiliates; or
 (iii) the first entity and any of its affiliates;
  any of the income or capital of the trust; and
 (b) the percentage (the control percentage) of the income or capital paid or applied is