Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 1/6)
Character Range: 5822413–5825128

3                                             A *public trading trust for the income year                        The trust must be a *resident unit trust for the income year

703‑30  When is one entity a wholly‑owned subsidiary of another?
 (1) One entity (the subsidiary entity) is a wholly‑owned subsidiary of another entity (the holding entity) if all the *membership interests in the subsidiary entity are beneficially owned by:
 (a) the holding entity; or
 (b) one or more wholly‑owned subsidiaries of the holding entity; or
 (c) the holding entity and one or more wholly‑owned subsidiaries of the holding entity.
 (2) An entity (other than the subsidiary entity) is a wholly‑owned subsidiary of the holding entity if, and only if:
 (a) it is a wholly‑owned subsidiary of the holding entity; or
 (b) it is a wholly‑owned subsidiary of a wholly‑owned subsidiary of the holding entity;
because of any other application or applications of this section.
Note: This Part also operates in some cases as if an entity were a wholly‑owned subsidiary of another entity, even though the entity is not covered by the definition in this section because of:
(a) ownership of shares under certain arrangements for employee shareholding (see section 703‑35); or
(aa) ownership of certain preference shares following an ADI restructure (see section 703‑37); or
(b) interposed trusts that are not fixed trusts (see section 703‑40).
 (3) For the purposes of this section, one entity is not prevented from being the beneficial owner of a *membership interest in another entity merely because the first entity is or becomes:
 (a) a Chapter 5 body corporate within the meaning of the Corporations Act 2001; or
 (b) an entity with a status under a *foreign law similar to the status of a Chapter 5 body corporate under the Corporations Act 2001.

703‑33  Transfer time for sale of shares in company
 (1) This section applies if:
 (a) under a contract:
 (i) a person (the seller) stops being entitled to be registered as the holder of a *share in a company at a time (the transfer time); and
 (ii) another person (the buyer) becomes entitled to be registered as the holder of the share in the company at the transfer time; and
 (b) as a result of the contract, the seller stops being the beneficial owner of the share, and the buyer becomes the beneficial owner of the share; and
 (c) the seller and the buyer dealt with each other at *arm's length in relation to the contract; and
 (d) the seller and the buyer were not *associates of one another at any time during the period:
 (i) starting when the contract was entered into; and
 (ii) ending at the transfer time.
 (2) For the purposes of subsection 703‑30(1):
 (a) the seller is