Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p30
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 30/34)
Character Range: 3599443–3602238

would be *exempt income or *non‑assessable non‑exempt income of the individual.
 (5) The Commonwealth, each of the States, the Australian Capital Territory, the Northern Territory and Norfolk Island are prescribed persons in relation to any *corporate tax entity.
 (6) An *exempt institution that is eligible for a refund cannot be a prescribed person in relation to a *corporate tax entity under this section.

208‑45  Persons who are taken to be prescribed persons
 (1) This section applies to a person that:
 (a) is a company, a trustee, or a partnership, that holds *membership interests (whether *accountable membership interests or excluded membership interests), or *partial interests (whether *accountable partial interests or excluded partial interests), in a *corporate tax entity (the relevant entity); and
 (b) is not a prescribed person under section 208‑40.
 (2) A company that holds *membership interests, or *partial interests, in the relevant entity is taken to be a prescribed person in relation to the relevant entity if the risks involved in, and the opportunities resulting from, holding the membership interests or partial interests are substantially borne by, or substantially accrue to, as the case may be, one or more prescribed persons.
 (3) A trustee of a trust who holds *membership interests, or *partial interests, in the relevant entity is taken to be a prescribed person in relation to the relevant entity if the risks involved in, and the opportunities resulting from, holding the membership interests or partial interests are substantially borne by, or substantially accrue to, as the case may be, one or more prescribed persons.
 (4) A trustee of a trust who holds *membership interests, or *partial interests, in the relevant entity is taken to be a prescribed person in relation to the relevant entity if:
 (a) unless subsection (7) applies, the trust is controlled by one or more persons who are prescribed persons; or
 (b) all the beneficiaries who are presently entitled to, or during the relevant income year become presently entitled to, income from the trust are prescribed persons.
 (5) In determining whether subsection (3) or (4) applies in respect of a trust that is controlled by a person, have regard to the way in which the person, or any *associate of the person, exercises powers in relation to the trust.
 (6) A person controls a trust if:
 (a) the person has the power, either directly, or indirectly through one or more interposed entities, to control the application of the income, or the distribution of the property, of the trust; or
 (b) the person has the power, either directly, or indirectly through one or more entities, to appoint or remove the trustee of the trust; or
 (c) the person has the power, either directly, or indirectly