Document ID: chunk:federal_register_of_legislation:C2019A00034:clause:4_6:p4
Version: federal_register_of_legislation:C2019A00034
Segment Type: clause
Provision Reference: sch 4 cl 6 (pt 4/6)
Character Range: 69506–72270

the *total participation interests held by each *member of the group in the test entity, take into account:
 (a) a particular *direct participation interest; or
 (b) a particular *indirect participation interest;
held in the entity only once if it would otherwise be counted more than once.

Influence test
 (6) A *sovereign entity group has influence of a kind described in this subsection in relation to the test entity at a time if any of the following requirements are satisfied at that time:
 (a) a *member of the group:
 (i) is directly or indirectly able to determine; or
 (ii) in acting in concert with others, is directly or indirectly able to determine;
  the identity of at least one of the persons who, individually or together with others, make (or might reasonably be expected to make) the decisions that comprise the control and direction of the test entity's operations;
 (b) at least one of those persons is accustomed or obliged to act, or might reasonably be expected to act, in accordance with the directions, instructions or wishes of a member of the group (whether those directions, instructions or wishes are expressed directly or indirectly, or through the member acting in concert with others).
 (7) However, a *sovereign entity group does not have influence of a kind described in subsection (6) if, disregarding any breach of terms of a *debt interest by any entity, the sovereign entity group would not have influence of that kind.
 (8) For the purposes of subsection (6), in working out whether an entity is a *member of a *sovereign entity group, treat the references in paragraphs 880‑20(1)(c) and (2)(c) to 100% as instead being references to more than 50%.

880‑110  Sovereign entity's deduction from membership interest etc.—loss not deductible
  A *sovereign entity cannot deduct an amount if:
 (a) the sovereign entity is covered by section 880‑125; and
 (b) the amount is a loss in respect of any of the following kinds of interest that the sovereign entity holds in another entity:
 (i) a *membership interest;
 (ii) a *debt interest;
 (iii) a *non‑share equity interest; and
 (c) the requirements in paragraphs 880‑105(1)(c), (d) and (e) would be satisfied, on the assumptions that:
 (i) the amount were *ordinary income or *statutory income; and
 (ii) the amount became ordinary income or statutory income of the sovereign entity at the time it arose; and
 (iii) references in those paragraphs to the test entity were references to the other entity mentioned in paragraph (b) of this section.

880‑115  Sovereign entity's capital gain from membership interest etc.—gain disregarded
  Disregard a *capital gain of a *sovereign entity from a *CGT event that happens in relation to a *CGT asset if:
 (a) the sovereign entity is