Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 15/30)
Character Range: 7817687–7820311

company if the person has a right, power or option:
 (a) to acquire those rights from one or other of those companies; or
 (b) to do something that would prevent one or other of those companies from exercising its rights for its own benefit, or from receiving any benefit arising from having those rights.
 (2) It does not matter whether the person has the right, power or option because of the *constitution of one or other of those companies, any agreement or otherwise.
 (3) However, the right, power or option of an owner of *ownership interests in the *head entity of a *demerger group to *acquire, under a *demerger, ownership interests in the *demerged entity is not a right, power or option covered by subsection (1).

975‑155  When is an entity a controller (for CGT purposes) of a company?
  An entity (the first entity) is a controller (for CGT purposes) of a company if:
 (a) the first entity has an *associate‑inclusive control interest in the company of at least 50%; or
 (b) the first entity has an associate‑inclusive control interest in the company of at least 40% and entities other than the first entity or associates of the first entity do not control the company; or
 (c) the first entity controls the company (alone or with an *associate).

975‑160  When an entity has an associate‑inclusive control interest
 (1) An entity has an associate‑inclusive control interest in a company in the circumstances set out in Subdivision A of Division 3 of Part X of the Income Tax Assessment Act 1936.
 (2) However, in working out whether an entity has an associate‑inclusive control interest of a particular percentage for the purposes of section 975‑155, there are these modifications to the way Part X of that Act operates:
 (a) that Part is applied to any company, including one acting as a trustee; and
 (b) subsection 349(4) applies in all cases in working out which entity holds a direct control interest or a control tracing interest equal to 100%; and
 (c) subsections 350(6) and (7) and 355(1) are ignored; and
 (d) despite subsection 352(2), an interposed entity may be taken into account in calculating an indirect control interest if the interposed entity is:
 (i) a company of which the first entity or an *associate is a controller; or
 (ii) a partnership or a trust; and
 (e) section 354 applies as if it referred to partnerships rather than CFP's; and
 (f) section 355 applies as 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