Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:13_15:p5
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 13 cl 15 (pt 5/11)
Character Range: 119285–122036

excluded partial interest.
 (3) A *partial interest in an entity is an excluded partial interest if, having regard to:
 (a) the purposes for which the interest was granted; and
 (b) the nature of the interest; and
 (c) any special or limited rights connected with or arising from:
 (i) the interest; or
 (ii) other *membership interests, or partial interests, in the entity held by the holder of the interest; or
 (iii) membership interests, or partial interests, in the entity held by persons other than the holder of the interest;
  including rights that are conferred or exercisable only if the holder of the membership interests or partial interests concerned is, or is not, a prescribed person; and
 (d) the extent to which the interest is similar to or differs from beneficial ownership; and
 (e) the relationship between the value of the interest and the value of the entity; and
 (f) any relationship or connection (whether of a personal or business nature) between holders of partial interests in the entity, and the holders of membership interests in the entity, of which the entity is aware; and
 (g) any *arrangement in respect of membership interests (including unissued membership interests) in the entity, or partial interests in the entity, of which the entity is aware;
it would be reasonable to conclude that the partial interest is not relevant in determining whether the entity is effectively owned by prescribed persons because holding the membership interest to which the partial interest relates does not involve the holder bearing the risks, or result in the accrual to the holder of the opportunities, of ownership of the entity that ordinarily arise from, or are ordinarily attached to, the holding of *ordinary membership interests in an entity.
 (4) In applying subsection (3), the fact that a person is a trustee is to be disregarded.
 (5) Without limiting subsection (3), a *partial interest in an entity is also an excluded partial interest if it was granted or otherwise created, or was transferred or acquired, for a purpose (other than an incidental purpose) of ensuring that the entity is not effectively owned by prescribed persons.

208‑40  Prescribed persons
 (1) A company is a prescribed person in relation to another *corporate tax entity if:
 (a) the company is not an *Australian resident; or
 (b) were the company to receive a *distribution made by the other corporate tax entity, the distribution would be *exempt income of the company.
 (2) A trustee is a prescribed person in relation to a *corporate tax entity if:
 (a) all the beneficiaries in the trust are prescribed persons under other provisions of this section; or
 (b) were the trustee to receive a *distribution made by the corporate tax entity,