Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_11:p18
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 11 (pt 18/20)
Character Range: 328690–331410

(a) the first entity *controls (for value shifting purposes) the other entity; and
 (b) there is no entity that controls (for value shifting purposes) both the first entity and the other entity.

727‑355  Control (for value shifting purposes) of a company

50% stake test
 (1) An entity controls (for value shifting purposes) a company if the entity, or the entity and its *associates between them:
 (a) can exercise, or can control the exercise of, at least 50% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
 (b) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 50% of any dividends that the company may pay; or
 (c) have the right to receive for (either directly, or indirectly through one or more interposed entities) at least 50% of any distribution of capital of the company.

40% stake test
 (2) An entity also controls (for value shifting purposes) a company if the entity, or the entity and its *associates between them:
 (a) can exercise, or can control the exercise of, at least 40% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
 (b) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any dividends that the company may pay; or
 (c) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any distribution of capital of the company;
unless an entity (other than the first entity and its associates) either alone or together with its associates in fact controls the company.

Actual control test
 (3) An entity also controls (for value shifting purposes) a company if the entity, either alone or together with its *associates, in fact controls the company.

727‑360  Control (for value shifting purposes) of a fixed trust

40% stake test
 (1) An entity controls (for value shifting purposes) a *fixed trust if the entity, or the entity and its *associates between them, have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any distribution of trust income, or trust capital, to beneficiaries of the trust.

Other tests
 (2) An entity also controls (for value shifting purposes) a *fixed trust if:
 (a) the entity, or an *associate of the entity, whether alone or with other associates (the relevant entity), has the power to obtain the beneficial enjoyment of the trust's capital or income (whether or not by exercising its power of appointment or revocation, and whether with or without another entity's consent); or
 (b) the relevant