Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p23
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 23/26)
Character Range: 160199–162926

Paragraphs 820‑875(2)(a) and (b) set out special rules under which an entity is taken to hold a TC control tracing interest in another entity that is equal to 100%, which could then be taken into account in calculating a TC indirect control interest.

820‑795  What is a foreign controlled Australian partnership?

Corporate limited partnership

 (1) A *corporate limited partnership is a foreign controlled Australian partnership (or an FCAP) at a particular time if, and only if, at that time:
 (a) it is an *Australian entity; and
 (b) at least one of the following subparagraphs applies to it:
 (i) not more than 5 *foreign entities (each of which holds a *TC control interest in the partnership that is at least 1%) hold a total of TC control interests in the partnership that are 50% or more;
 (ii) at least one *general partner of the partnership is a foreign entity or a *foreign controlled Australian entity.

Partnership that is not a corporate limited partnership

 (2) A partnership other than a *corporate limited partnership is a foreign controlled Australian partnership (or an FCAP) at a particular time if, and only if, at that time:
 (a) it is an *Australian partnership; and
 (b) at least one of the following subparagraphs applies to it:
 (i) not more than 5 *foreign entities (each of which holds a *TC control interest in the partnership that is at least 1%) hold a total of TC control interests in the partnership that is 50% or more;
 (ii) a foreign entity holds a TC control interest in the partnership that is 40% or more, and no other entity or entities (except an *associate entity of the foreign entity or entities including the foreign entity or its associate entities) control the partnership.

Exception

 (3) Despite subsections (1) and (2), a partnership is not an FCAP at a particular time if, at that time:
 (a) the partnership would, apart from this subsection, be an FCAP only because of subparagraph (1)(b)(i), (2)(b)(i) or (ii); but
 (b) the total of the following interests would be less than 20% if paragraphs 820‑875(2)(a) and (b) were disregarded:
 (i) the *TC direct control interest in the partnership held by the *foreign entity or entities mentioned in subparagraph (1)(b)(i), (2)(b)(i) or (ii);
 (ii) the *TC indirect control interest in the partnership held by the foreign entity or entities;
 (iii) the TC direct control interests in the partnership held by any *associate entities of the foreign entity or entities (other than any TC direct control interests that have been taken into account in calculating the interest mentioned in subparagraph (ii));
 (iv) the TC indirect control interests in the partnership held by the entity's associate entities (other than any TC