Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p4
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 4/19)
Character Range: 9594–12188

your spouse or child under 18 years; or
 (b) the person acts, or could reasonably be expected to act, in accordance with your directions or wishes, or in concert with you.

 (2) Another partner in a partnership in which you are a partner is not your small business CGT affiliate only because the partner acts, or could reasonably be expected to act, in concert with you in relation to the affairs of the partnership.

152‑30  Meaning of connected with the entity

 (1) An entity is connected with another entity if:
 (a) either entity controls the other entity in the way described in this section; or
 (b) both entities are controlled in that way by the same third entity.

Control of entity: 40% or more of rights

 (2) An entity (the first entity) controls another entity if the first entity, its *small business CGT affiliates or the first entity together with its small business CGT affiliates:
 (a) beneficially own, or have the right to acquire the beneficial ownership of, interests in the other entity that carry between them the right to receive at least 40% (the control percentage) of any distribution of income or capital by the other entity; or
 (b) if the other entity is a company—beneficially own, or have the right to acquire beneficial ownership of, shares in the company that carry between them the right to exercise, or control the exercise of, at least 40% (the control percentage) of the voting power in the company; or
 (c) if the other entity is a discretionary trust:
 (i) are the trustee or trustees of the trust (other than the Public Trustee of a State or Territory); or
 (ii) have the power to determine the manner in which the trustee or trustees of the trust exercise the power to make any payment of income or capital to or for the benefit of beneficiaries of the trust.

 (3) If the control percentage in subsection (2) is at least 40%, but less than 50%, then the Commissioner may determine that the first entity does not control the other entity if the Commissioner is satisfied, or thinks it reasonable to assume, that the other entity is controlled by an entity other than, or by entities that do not include, the first entity or any of its *small business CGT affiliates.

Exception for trusts

 (4) Paragraph (2)(c) does not apply if:
 (a) a beneficiary of the trust mentioned in that paragraph controls the trust in the way described in this section; and
 (b) that beneficiary is not a *small business CGT affiliate of any of the trustees of that trust or of a person who has the power of determination mentioned in subparagraph (2)(c)(ii).

Control