Document ID: chunk:federal_register_of_legislation:C2012A00126:clause:1_1:p8
Version: federal_register_of_legislation:C2012A00126
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 8/13)
Character Range: 22378–25037

the entity has at least 25 *members (ignoring objects of a trust); or
 (c) one or more of the entities covered by subsection (3) have a *total participation interest in the entity of more than 25%; or
 (d) all the membership interests in the entity are held, directly or indirectly, by one or more entities that satisfy the requirements in paragraph (a), (b) or (c); or
 (e) the entity is an entity of a kind specified in the regulations made for the purposes of this paragraph.
 (2) For the purposes of subsection (1):
 (a) treat the following entities as together being one entity:
 (i) an individual;
 (ii) each of his or her relatives;
 (iii) each entity acting in the capacity of nominee of an individual mentioned in subparagraph (i) or (ii); and
 (b) treat the following entities as together being one entity:
 (i) an entity that is not an individual;
 (ii) each entity acting in the capacity of nominee of the entity mentioned in subparagraph (i).

Foreign widely held entities
 (3) An entity is covered by this subsection if:
 (a) it is a life insurance company that is not an Australian resident at any time during the income year; or
 (b) it is a *foreign superannuation fund, being a fund that has at least 50 *members; or
 (c) it is an entity that is a fund established by an *exempt foreign government agency for the principal purposes of funding pensions (including disability and similar benefits) for the citizens or other contributors of a foreign country.

Concentration test
 (4) The entity breaches the concentration test if 10 or fewer entities have a *total participation interest in the entity of 50% or more.
 (5) In determining the number of entities for the purposes of subsection (4), do not count the following:
 (a) an *IMR foreign fund in relation to the income year;
 (b) an entity that satisfies the requirement in paragraph (1)(d), (3)(a), (3)(b) or (3)(c);
 (c) an entity that holds an *indirect participation interest in the entity through one or more entities covered by paragraph (a) or (b) of this subsection.

842‑245  Financial arrangements covered by this section
 (1) A *financial arrangement is covered by this section unless subsection (2), (3) or (4) applies.
 (2) A *financial arrangement is not covered by this section if:
 (a) the *IMR foreign fund has a *total participation interest in another entity of 10% or more; and
 (b) the financial arrangement is:
 (i) a *debt interest or an *equity interest in the entity; or
 (ii) the result of a *financing arrangement for the entity that is neither a debt interest nor an equity interest; or
 (iii) a *derivative financial arrangement that relates to a financial